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Services Division
The companies belonging to the Services Division are listed in the section on “Group Structure and
Operations”.
The Division’s sales rose € 146 million (+14 %) to € 1,189 million in 2007 as against year-end of 2006.
Services Division Sales
0 250 500 750 1,000 1,250
in € mil. FY 2007 FY 2006
1,043
1,189
The increase was generated mainly by DMU (€ +107 million). As in the previous year, the fastest rates
of growth were registered in the steel scrap (€ +88 million; volume-induced) and non-ferrous metals
(€ +15 million; price-induced) product segments.
At VPS, higher transportation volumes for SZFG in particular and regional transportation as well
as track construction projects at Salzgitter and Peine resulted in an increase of € 16 million. SZAE sales
(€ +6 million) benefited to a large extent from the settlement of a project with an Indian customer.
The rise of € 8 million at SZST resulted mainly from brisker demand for technical services within the
Group.
The other companies reported only slight changes in sales.
The segment’s share of external sales amounted to 42%, which is slightly up on the previous year
(41%). DMU, TMG, HAN and VPS generated significant sales with third parties.
At € 40.4 million, the Division’s earnings before tax were almost three times the previous year’s
figure (€ 15.4 million). The determining factor was a profit of € 17.5 million (€ +24.0 million) at
SZAE that climbed € 21.4 million solely due to special effects (a € 25 million waiver of receivables by
SMG and € 3.6 million in special write-downs at SZAE). However, even excluding these special items,
SZAE had improved its financial performance compared with the previous year (€ +2.6 million).
Higher profit was also generated by VPS (€ +2.9 million), DMU (€ +1.6 million), HAN (€ +1.6 million)
and SZMF (€ +0.8 million). A downtrend in earnings was reported by SZST (€ –3.4 million),
GES (€ –1.0 million) and TMG (€ – 0.4 million).
VPS benefited primarily from higher transportation volumes and a lower level of necessary provisions.
Profit at DMU rose mainly owing to lower expenses at the non-operational level. HAN recorded
its best result since the company was founded due to the swift growth in coal transportation for both
the Group and third-party customers. SZMF’s results improved because the previous year’s figure contained
a provision for the refurbishment of a building. The larger loss at SZST was mainly caused by