Engineering

2.3 Management report on on the Group Results of of operations of of the the business areas areas
First slabs from the Brazilian steel mill mill
supplemented production in in Duisburg.
Steel Europe order intake Steel Europe EBIT
in million €, quarter on quarter rate of change in million €, quarter on quarter rate of change
Q1 2,500 Q1
Q2 + 20% 2,999 Q2
Q3 (10)% 2,706 Q3
Q4 + 3% 2,781 Q4
2009/2010
2009/2010
Q1 + 5% 2,929 Q1
Q2 + 27% 3,721 Q2
Q3 (19)% 3,006 Q3
Q4 (11)% 2,688 Q4
2010/2011
2010/2011
Good capacity utilization
Steel Europe’s crude steel production including the share in investee company Hüttenwerke Krupp
Mannesmann reached 13.2 million tons, level with the prior year. In addition, the new Brazilian mill of Steel
Americas began supplying slabs to Germany from December 2010. Including contract rolling, we increased
rolled steel production for customers by 4% to 14.1 million tons.
The capacities of the core units were fully utilized up to mid-year 2011. The market slowdown due mainly to
the inventory cycle led to lower operating levels in the steelmaking and hot rolling operations in the final
fiscal quarter.
Strong increase in EBIT
The business area again significantly improved its earnings before interest and taxes (EBIT) in 2010/2011.
Overall, EBIT rose from €731 million to €1,133 million. EBIT margin reached 8.8% compared with 6.8% in
the prior year. Higher raw material costs were offset by positive price and volume effects. The ongoing
programs to increase efficiency and reduce costs also contributed to the improved earnings.
+ 52%
+ 13%
(11)%
+ 34%
+ 16%
+ 7%
(21)%
72
127
193
218
193
258
300
322
253