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A Group Management Report and Management Report on Salzgitter AG II. Profitability, Financial Position and Net Assets 156 157
Salzgitter AG Income Statement (summarized)
in € mil. FY 2007 FY 2006
Other operating income 91.8 51.1
Personnel expenses 40.8 75.3
Depreciation and amortization1) 3.8 1.3
Other operating expenses 41.9 202.2
Income from shareholdings 203.2 321.7
Net interest result –9.0 32.3
Earnings before tax (EBT) 199.5 126.3
Tax –0.3 –7.4
Net profit for the year 199.2 118.9
Other operating earnings include gains from using treasury shares as acquisition financing in connection
with the purchase of shareholdings.
The decline in personnel expenses is mainly due to an adjustment made in the previous year to the
rate of interest applied to pension provisions (3%) to cover increases in salaries and pensions.
Financial investments held by one non-consolidated company were subject to write-downs during
2007.
The 2006 other operating expenses comprised payments made in connection with hedging and the
sale of shares in Vallourec.
Income from shareholdings in 2007 relates almost exclusively to earnings contributions received by SMG.
The significant decline in net interest income results from a reduction in interest rates as part of groupwide
cash management.
The tax expense is influenced by SMG dividend income that is almost free of tax.
The company’s workforce was made up of 138 employees as of December 31, 2007, which is an
increase of 18 as against the previous year.
1) Including unscheduled
write-downs
on financial assets
and marketable
securities
Profitability, Financial
Position & Net Assets