Salzgitter Posts Loss - Multiple Burdens

Salzgitter AG, a German steel and technology group, has announced a net loss of €447 million for the first nine months of 2023.

The company attributed the loss to a combination of factors, including rising energy and raw material costs, supply chain disruptions, and the impact of the war in Ukraine.

Salzgitter's revenue for the period increased by 24% to €9.2 billion, but this was outpaced by a 37% increase in costs of goods sold.

The company's steel business was particularly hard-hit, with a loss of €372 million.

Salzgitter cited the impact of high energy prices on its electric arc furnaces, which account for about half of its steel production.

The company's technology business also posted a loss, of €75 million, due to lower demand for its products from the automotive industry.

Salzgitter said it is taking steps to improve its financial performance, including reducing costs and increasing efficiency.

The company is also exploring opportunities to expand its renewable energy business.

Despite the challenges it faces, Salzgitter remains optimistic about the future.

The company said it expects demand for steel to recover in the medium term, and it is well-positioned to benefit from the growing global demand for green steel.