In spite of the upcoming regular major repair of a blast furnace that will burden profit by around € 80 million in the second half of the year, the founda-tions have been laid for the Group's sustainable return to the profit zone. Against the backdrop of merely marginal improvements in Europe's economic environment and the protracted structural crisis in the European steel market, this gratifying trend is reflected first and foremost in the powerful impact exerted by the groupwide "Salzgitter AG 2015" restructuring program.  Also after another reduction in the actuarial rate applicable to pension provisions to only 1.5 %, the company continues to enjoy an extremely sound financial basis, with an equity ratio of 31% and a net credit balance of € 345 million.

In the reporting period, external sales remained virtually unchanged compared with the year-earlier period (€ 2,287.9 million; first quarter of 2014: € 2,300.9 million). Earnings before taxes of € 51.8 million significantly exceeded the figure posted in the first quarter of 2014 (€ –8.7 million).

Along with particularly positive performance by the Strip Steel and Plate / Section Steel business units, all the other business units also contributed to this success. Pre-tax profit comprises a profit contribution of € 3.1 million by the Aurubis investment (first quarter 2014: € 8.2 million). The after-tax result stood at € 32.7 million (first quarter of 2014: € –13.3 million), which brings basic earnings per share to € 0.58 (first quarter of 2014: € –0.26). The return on capital employed (ROCE) was recorded at 7.5% (first quarter of 2014: 0.4%).2

The shipments of the Strip Steel Business Unit fell marginally short of the level achieved in the previous year's period in what remained a fiercely competitive environment. Lower selling prices caused external sales to drop slightly to € 524.8 million (first quarter of 2014: € 575.4 million). At € 16.6 million, the business unit's pre-tax results nonetheless rose appreciably (first quarter of 2014: € –2.2 million).

The Plate / Section Business Unit reported stable external sales (€ 253.2 million; first quarter of 2014: € 251.8 million) in connection with an upturn in shipments. The pre-tax result almost reached breakeven (€ –0.7 million; first quarter of 2014: € –22.4 million).

In the Energy Business Unit, the suspension of the South Stream contract and the low demand of oil and gas producers burdened the order situation of European plants operating in the line pipe business. By contrast, the US tube rolling mills enjoyed a high level of basic capacity utilization, delivering commensurately positive results. Once again, the stainless steel tubes companies reported gratifying performance. Shipments of the Business Unit declined overall; external sales dropped to € 293.9 million (first quarter of 2014: € 338.9 million).

The Energy Business Unit delivered a pre-tax loss of € 4.7 million, representing a notable improvement compared to the year-earlier period (first quarter of 2014: € –12.3 million).

The Trading Business Unit's shipment volumes increased in the first three months of 2015, driven first and foremost by international trading. External sales climbed to € 851.9 million (first quarter of 2014: € 774.6 million). At € 11.8 million, earnings before taxes more than doubled in a year-on-year comparison (first quarter of 2014: € 4.9 million).3
The Technology Business Unit saw its order intake increase in the period under review. The business unit's external sales remained stable (€ 315.1 million; first quarter of 2014: € 313.0 million). The Technology Business Unit generated a presentable pre-tax profit of € 10.1 million, representing another rise compared with the year-earlier period (first quarter 2014: € 9.2 million). The KHS Group lifted its profit thanks to better service business. The KDE Group also advanced its result, while KDS' pre-tax profit was slightly lower in a year-on-year comparison.
The external sales of Industrial Participations / Consolidation increased to € 49.0 million as against the previous year's figure (first quarter 2014: € 47.2 million). Earnings before taxes of € 18.7 million exceeded the figure of € 14.1 million posted in the first quarter of 2014, and included € 3.1 million in earnings from the Aurubis investment (first quarter of 2014: € 8.2 million), as well as valuation effects from foreign exchange transactions that firmed up profit.

More information on Salzgitter AG’s Q1 results can be obtained at http://www.salzgitter-ag.com/zb/2015/q1/en/