Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Shares of Salzgitter AG (ETR:SZGG) fell more than 3% on Monday after the German steelmaker reported a pre-tax loss of €83.8 million for the first half of 2025, reversing a €11.5 million profit a year earlier, citing weaker steel demand, falling prices and charges on derivatives.
Revenue declined 11% to €4.66 billion from €5.24 billion. Earnings before interest, taxes, depreciation and amortization dropped to €116.8 million from €233.6 million.
The after-tax loss widened to €88.9 million from €18.6 million, or €1.68 per share compared with €0.40 per share a year earlier. Return on capital employed dropped to a negative 1.6% from 1.9%.
The company booked €79.9 million in charges from the valuation of derivative positions and €10 million in nonrecurring impairment provisions related to planned portfolio streamlining.
The Technology Business Unit and Salzgitter’s investment in Aurubis AG (ETR:NAFG) contributed positively, with Aurubis adding €71.5 million.
The Trading Business Unit recorded a €10.9 million pre-tax profit after a €0.8 million loss a year earlier. Losses deepened in the Steel Production and Steel Processing units.
Crude steel output fell 12% to 2.93 million metric tons from 3.33 million tons. Steel Production sales declined to €1.70 billion from €1.82 billion, with the segment’s pre-tax loss widening to €55.6 million from €22 million.
Steel Processing sales dropped to €597.6 million from €859.3 million, with a pre-tax loss of €63.4 million from €72.5 million.
Trading sales fell to €1.43 billion from €1.60 billion. Technology sales eased to €844.8 million from €871.3 million, while pre-tax profit rose to €54.7 million from €52.7 million.
The company said work continues on its SALCOS low-carbon steel program to convert its integrated steelworks by 2033.
The first stage, with planned investment of about €2.3 billion, is under review due to construction delays, with production from the new route now expected in the first half of 2027.
For 2025, Salzgitter forecast sales between €9 billion and €9.5 billion, EBITDA between €300 million and €400 million, and a pre-tax result between a €100 million loss and breakeven. It expects return on capital employed to be slightly above last year’s figure.