Download - Salzgitter AG

Consolidated Sales by Region
Germany
Other EU countries
Rest of Europe
America
Asia
Other regions
Group
– 1)
582
229
938
977
991
575
1,328
2,203
1,929
3,984
4,903
8,447
10,192
in € mil. FY 2007 FY 2006 1) 2006 included in “Other regions”
The Salzgitter Group closed the financial year 2007 with a pre-tax profit of € 1,313.9 million. In comparison
with the previous year’s figure (€ 1,854.8 million), account must be taken of the fact that this
figure of € 906.9 million include proceeds from the sale of the Vallourec shares. The Group therefore
impressively exceeded operating profit in 2006, adjusted for this amount (€ 947.9 million), thereby
setting a new record.
This serves to demonstrate that, instead of cyclicality with a time lag, the market environment was
remarkably good both for the Steel and the Tubes Divisions. Along with favorable market conditions,
the groupwide Profitability Improvement Program, relaunched in 2007, was also a contributing factor.
The persistently buoyant market conditions for rolled steel products enabled the Steel Division to set
a new profit benchmark of € 749.4 million, following on from the outstanding previous year’s result
(€ 433.8 million). The greater volume of shipments and steadily rising selling prices more than fully
compensated for the higher cost of raw materials and energy.
Higher shipment volumes and growth in specific gross earnings were the determinant factors in
enabling the Trading Division to outperform its record profit in the year 2006 (€ 200.9 million) with
€ 212.5 million.
Against the background of a prospering steel tubes market, the Tubes Division was able to more than
compensate for additional price increases in input materials by raising selling prices. In particular, the
favorable development of the large-diameter tubes business resulted in a gratifying pre-tax profit of
€ 302.5 million. This result is notably higher than in the previous year (€ 262.9 million) and is all the
more remarkable as € 73 million in proceeds from Vallourec were still included in the 2006 figure.