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not least due to the effect still included in the first half-year from the sale of favorably valued material
inventories at spot market prices which had meanwhile risen markedly.
The international steel tubes market was in an excellent condition, buoyed by persistently strong
demand. Great stimulus emanated from the energy sector in particular, with its strong demand for
steel tubes for exploration, the transport of oil and gas and the construction of power plants. The
above-target increase in the result of the Tubes Division to € 302.5 million was mainly generated by
the large-diameter tubes product segment.
With high order intake in the filling and packaging technology business, the new Technology Division
lifted sales and contributed an amount of € 18.0 million to operating profit. Profit was disclosed at
€ 4.0 million and included € –14.0 million in first-time consolidation effects owing to the purchase
price allocation required under IFRS. Due to the final purchase of shares (“closing”) at the start of July,
it covers only the second half of 2007 and, as already mentioned, is not reflected in the planning.
Taking account of the result of the Services Division (€ 40.4 million, including a claim waiver of € 25
million by SMG in favor of SZAE not impacting the bottom line), consolidated pre-tax profit stood at
€ 1,313.9 million, a figure which was considerably higher than originally planned.
The new ROCE target, which had been raised in the financial year to an average 15% during an economic
cycle, was greatly exceeded by an ROCE of 28.0% (2006: 47.8%). Upon elimination of the
impact of selling the Vallourec shares in 2006 and the net cash investment held at banks, ROCE from
industrial operations came to 46.9% (2006: 55.1%).