In the first three months of 2013, the performance of the Salzgitter Group was overshadowed by persistently unfavorable general economic conditions in Europe. The recovery in the demand for steel at the beginning of the year proved to be short lived; a renewed weakening of selling prices was not compensated by the more hesitant reduction in the cost of raw materials.

Capacity utilization in the flat steel and plate businesses, as well as the tubes companies in part was however comparatively satisfactory. The Trading Division benefited from the positive position of its international trading, while the Technology Division continued to successfully implement its restructuring measures.

Overall, the Group closed the Q1 2013 with a pre-tax loss that underscores the significance of the "Salzgitter AG 2015" reorganization program initiated the year before. An equity ratio of 40.4 % and a net financial position of more than EUR 400 million continue to form a sound financial basis for mastering the current challenges.

Consolidated external sales declined to EUR 2,446.8 million, down EUR 168 million, mainly due to selling prices. Earnings before interest, tax, depreciation and amortization stood at EUR 98.7 million and the pre-tax result came in at EUR -15.8 million. This figure includes an amount of EUR 5.8 million in after-tax profit from Aurubis AG, a participation included at equity. The result after tax posted EUR -16.6 million, the equivalent of EUR -0.32 per share. Return on capital employed stood at 0.4 %.

While the protracted winter weather hampered construction activities in many regions, thereby placing an additional burden on the beams segment's performance that was already weak owing to economic conditions, the Steel Division's flat products reported generally robust demand. Shipment tonnage increased by 4 %; the Steel Division's external sales fell short of the figure posted in the first three months of 2012.

Lower raw materials costs in comparison with the unfavorable situation of the year before contributed to lifting the pre-tax result that nonetheless remained clearly negative at EUR -33.7 million. This is first and foremost attributable to the unsatisfactory performance of Peiner Träger GmbH.

The Tubes Division's shipments matched the level of the first three months of 2012. The lower shipments of HFI-welded and precision tubes were compensated by large diameter pipes, the volume of which was still unsatisfactory, though higher than a year ago. External sales of EUR 400.8 million also held the year-earlier level. Against the backdrop of an unsatisfactory order book and capacity utilization, particularly in the precision tubes segment, compounded by pressure partly exerted on selling prices, the division delivered a pre-tax loss of EUR -12.5 million.

The Services Division that generated external sales of EUR 101.4 million fell marginally short of the year-earlier figure. The decline in earnings before tax resulted primarily from the lower profit contribution of DEUMU Deutsche Erz- und Metall-Union GmbH owing to lower shipment volumes and concurrently weaker margins.

Salzgitter intra-group sales grew to EUR 807.2 million in the reporting period.

It said “A major economic recovery in the eurozone has still failed to materialize. Consequently, no significant improvement in the general conditions for the Salzgitter Group's business activities can be anticipated in the coming months either. For this reason, we are focusing on implementing the internal measures announced that are geared to safeguarding the medium to long-term competitiveness of the Group. We will be reporting on the results and impact of the "Salzgitter AG 2015" organization project at mid year.”

It said “With German demand for steel at a more modest level, the European steel market is undergoing a severe structural crisis. There is a strong imbalance between excess supply and demand for several product groups in Europe, particularly in the case of southern European producers, which is exerting sustained pressure on margins across almost all steel products. This situation is exacerbated by the persistently high level of raw materials and energy costs as well, with no substantial easing anticipated in the foreseeable future. Rolled steel products for the construction industry, such as beams, are the hardest hit. With a delay in the customary seasonal recovery, there are no signs of fundamental improvement in the second half of the year. Against this background, the Steel Division anticipates stable sales at best and a negative pre-tax result around the level of the previous year.”