Salzgitter plant cautiously for the full year - Salzgitter narrows losses as third-quarter profits signal cautious recovery
Salzgitter AG, the German steel giant, has revised its full-year outlook. The company now anticipates a pre-tax loss of €100 million to €50 million, narrowing from its previous prediction of a €100 million loss to break-even. Gunnar Groebler, the current CEO, announced the revision due to persistently sluggish demand.
Despite the challenging market conditions, Salzgitter's third quarter showed signs of improvement. EBITDA climbed by over a fifth to €107.2 million, though it fell short of the prior target of up to €400 million. The company now forecasts EBITDA at €300 million to €350 million.
External sales in the third quarter dropped by over 11% to €2.2 billion. However, Salzgitter managed to return to a pre-tax profit of €11.1 million, reversing a significant loss of nearly €153 million in the same period last year.
Salzgitter has revised its revenue guidance downwards to slightly above €9.0 billion, from its earlier projection of €9.0 billion to €9.5 billion. The company continues to navigate a tough market, but its third-quarter performance indicates a potential turnaround.
