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Diversification pays off – Salzgitter AG records satisfactory results despite an adverse market environment
© Salzgitter AG

Salzgitter AG records satisfactory results despite an adverse market environment

Autor: Charlotte Lange

Datum: 28. Mrz. 2024

March 2024 | In a 2023 financial year characterized by high inflation rates and a slowing economic dynamic, the Salzgitter Group generated €677.0 million in EBITDA and €238.4 million in profit before taxes. The main drivers of this result were the steel production, steel processing and technology business areas.

After an encouraging start to 2023, the economic conditions in most markets became increasingly cloudy. Contrary to the industry trend, only the beverage filling and packaging systems sector performed very well over the entire year, meaning that the Technology division recorded record results with record order intake. The Group’s external sales fell to €10.8 billion, primarily due to the fall in average sales for steel products. The prices of most steel products fell from the high levels of the comparable period over almost the entire financial year. It was not until the final quarter that the trough was reached.

Business development in the first quarter of 2024 is still characterized by the adverse conditions of the second half of 2023. However, assuming that the slight upturn that is currently evident continues, we see an opportunity for the market environment to gradually brighten over the course of the year. Assuming political and economic circumstances do not escalate further, we expect the Salzgitter Group to do so in the 2024 financial year

  • sales between €10.5 billion and €11 billion (2023: €10.8 billion),
  • earnings before interest, taxes, depreciation and amortization (EBITDA) between €700 million and €750 million (2023: €677 million),
  • a pre-tax profit of between €250 million and €300 million (2023: €238 million) and
  • a return on capital employed (ROCE) at the previous year’s level.
  • The Executive Board and Supervisory Board will propose the distribution of a dividend of €0.45 per share to the Annual General Meeting on May 29, 2024.

The CEO of Salzgitter AG, Gunnar Groebler, commented: “The further development of the Salzgitter Group continued vigorously in the 2023 financial year. After we received the funding decision from the Federal Republic of Germany and the state of Lower Saxony in April 2023, the implementation of the first stage of our decarbonization program SALCOS® – Salzgitter Low CO2 Steelmaking – is in full swing. At the same time, we continued to bring our corporate vision “Pioneering for Circular Solutions” to life and concluded partnering agreements with well-known customers and suppliers and other partners. Our joining the Ellen MacArthur Foundation, a thought leader in the circular economy, marks a special milestone. We hope that this will provide further impetus for the ecological, social and, not least, economic benefits of the concept. In the midst of the transformation, the annual results, which are pleasing given the market conditions, once again demonstrate the financial and balance sheet solidity of the Salzgitter Group. This would not be possible without the high level of commitment and innovative strength of our employees. My heartfelt thanks to all of our colleagues for their tireless commitment to our company. With today’s publication of the business figures, we say goodbye to our CFO Burkhard Becker, who is retiring after 16 years with the group. I would like to take this opportunity to expressly thank Burkhard Becker for his services to Salzgitter AG. During its time, the company has overcome a wide range of challenges and is now financially stable. This is an important building block for our transformation. We wish Burkhard Becker all the best for the future.”

Salzgitter Keydata financial year 2023

Salzgitter Keydata financial year 2023


The Salzgitter Group’s external sales fell by 14% to €10.8 billion (2022: €12.6 billion), primarily due to lower steel prices. EBITDA fell accordingly to €677.0 million (2022: €1,618.2 million) and profit before taxes fell to €238.4 million (2022: €1,245.4 million). The result includes a €40.0 million contribution from the investment in Aurubis AG included at equity (IFRS accounting) (2022: €156.3 million). The €204.1 million after-tax profit (2022: €1,085.4 million) results in €3.70 earnings per share (2022: €20.00). The return on capital employed (ROCE) was 5.6% (2022: 20.1%). Net financial debt fell noticeably to €214.3 million (2022: €552.6 million). This, together with an equity ratio that has increased to 46.0% (2022: 43.7%), is evidence of the Salzgitter Group’s financial resilience even in challenging times.

CFO Burkhard Becker classifies the numbers: “The €238 million pre-tax profit is, on the one hand, the result of our consistent cost optimization and, on the other hand, shows the correctness of the Salzgitter Group’s broad positioning. I am particularly pleased about the latter, as my professional career in the Salzgitter Group began as CFO of KHS GmbH and over the last 13 years I have also temporarily worked operationally in all business areas as CFO of Salzgitter AG. The 2023 financial year was also a complete success on the financing side. We have not only extended and expanded our syndicated loan of just over €1 billion – including a first-time guarantee tranche for supply contracts for green electricity – but also released a further €800 million in funds tied up in working capital. We are now starting the new year with net debt of only around €200 million. At the end of my professional career, I have come to the conclusion: I am absolutely convinced of the strength of Salzgitter AG – in independence with a diversified portfolio, together with people and co-determination. It will remain important to keep an eye on financial balance in the future.”

More data: Annual Report 2023 Salzgitter AG or

(Source: Salzgitter AG)