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A Group Management Report and Management Report on Salzgitter AG II. Profitability, Financial Position and Net Assets 126 127
The companies of the Steel Division were once again able to pass on the higher costs of raw materials
and energy to the market. Moreover, they succeeded in considerably widening the margin against the
background of strong demand for their products. A pre-tax profit of € 283.7 million set a new record
for SZFG, which significantly outperformed both the previous year’s figure and the record highs of
2005 (€ 242.9 million) and, by comparison with the 2005 figures (which included special effects from
abolishing the LIFO method of inventory valuation) was generated fully by operations. PTG succeeded
in raising the pre-tax result almost fourfold to € 219.0 million as compared with the 2006 figure
(€ 61.6 million), the highest result in the company’s history. Along with repeated hikes in base prices,
a relatively high portion of particularly heavy sections and the preferred delivery to markets with high
selling price levels contributed to improving the average margin and thus to raising the results. The
still flourishing plate market enabled ILG to raise pre-tax profit over the prior year for the fifth time in a
row since 2003 (2006: € 164.7 million) and to post pre-tax profit of € 227.5 million. The concentration
of ILG on higher grade steels and particularly strong demand in this market segment drove the
selling prices to new, excellent levels. HSP benefited from the persistently favorable market environment
for sheet piles and raised its profit to € 9.8 million (2006: € 6.7 million). SZBE and SZEP generated
pre-tax results of € 3.0 million (2006: € 3.3 million) and € 6.6 million (2006: € 7.5 million).
Steel Division EBT
0 200 400 600 800
in € mil. FY 2007 FY 2006
433.8
As of December 31, 2007, the core workforce at the Steel Division had declined by 1 employee to
a total of 6,829 (2006: 6,830 employees). PTG (+7 employees), HSP (+12 employees) and SZEP
(+1 employee) recorded marginal growth, while SZFG (–15 employees), ILG (– 5 employees) and
SZBE (–1 employee) reduced their workforces.
749.4
Profitability, Financial
Position & Net Assets