German steel maker Salzgitter AG (SZGPY.PK, SZGPF.PK) reported that its first quarter of 2013 pre-tax loss was 15.8 million euros, compared to a pre-tax loss of 19.6 million euros in the previous year.
Consolidated external sales for the quarter declined to 2.4 billion euros from last year's 2.6 billion euros.
The company now anticipate a negative pre-tax result in the mid-double-digit million
euro range for the financial year 2013. While announcing the fiscal 2012 result, the Group expected pre-tax earnings in the lower double-digit million euro range in 2013.
As a result of the severe structural crisis in Europe's steel market, the prospect of the markets stabilizing over the course of the coming months has deteriorated. The upturn in momentum typical of the season has so far failed to materialize. Instead, with raw materials and energy costs still running at a consistently high level, growing pressure on margins is foreseeable. It has therefore become necessary to adjust the guidance of the Salzgitter Group for the financial year 2013, the company said.
As already announced, additional special effects may still arise as a consequence of implementing the 'Salzgitter AG 2015' Group project.
The company said that it will publish further details on the financial statements of the first quarter and adjusted annual guidance on May 15, 2013.
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