Posted By Uma Rajagopal
Posted on October 23, 2024
(Reuters) – German steelmaker Salzgitter cut its full-year guidance on Tuesday, reporting a drop in its earnings during the first nine months of 2024 against the backdrop of a sustained weak economic environment.
Salzgitter said in a statement it now expects 2024 earnings before interest, taxes, depreciation and amortization (EBITDA) of between 275 million euros ($297.69 million) and 325 million euros, down from a previous range of between 400 million and 500 million.
The company also said it anticipates one-off expenses of up to 120 million euros this year for “additional measures” on top of its previously announced cost-cutting programme “Performance 2026.
The expenses are set to be used especially for restructuring measures in the Trading Business Unit, Salzgitter said.
The trading business unit’s core segment is the Salzgitter Mannesmann Handel Group.
Salzgitter’s preliminary nine-month EBITDA result amounted to 322 million euros versus 576.0 million euros a year earlier, burdened by an impairment of around 130 million euros.
This was due to adjustments on assets of the companies of Mannesmann Precision Tubes Group in its Steel Processing Business Unit, the statement said.
($1 = 0.9238 euros)
(Reporting by Marleen Kaesebier, Editing by Rachel More)
