Annual Report 2009

TWICE AS MANY LAST TWICE AS LONG.

Making crude steel is not quite so adventurous. But it's hot. Some components don't last long at temperatures of over 1,000 degrees. One of them is the base of the converter slide gate, which separates the slag from the steel. So one of our employees designed a slide gate with a spare base plate. When the first one is worn out, the spare plate is pushed into position to take over the task. As a result, downtimes are reduced by 50 % and material costs are substantially lower. A success that will certainly be told around many a campfire.

Home > Highlights of the Financial Year 2009

Highlights of the Financial Year 2009

January

Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Vice Chairman of the Executive Board of Salzgitter AG, is appointed to the Supervisory Board of Norddeutsche Affinerie AG (now Aurubis AG).

February

Salzgitter AG and the steel manufacturer Corus announce that they will continue their successful and close cooperation in the development of high-strength and ductility (HSD^®) steel.

The new steels are especially suitable for components with complex geometric shapes which must also satisfy the enormous demands made on high strength.

March

Salzgitter AG announces its key data for the financial year ended: Consolidated external sales of almost € 12.5 billion, with a pre-tax profit of more than € 1 billion, set a new record. As early as the fourth quarter of 2008, however, the first effects of the drastic deterioration in the economic situation were being felt. At the Annual Results Press Conference, which took place on March 26, 2009, the Executive Board presented the 2008 Annual Report. Intensive discussions with the financial community then followed on from this event at well-attended analyst conferences in Frankfurt/ Main and London. The Supervisory Board of Salzgitter AG unanimously reappoints Prof. Dr.-Ing. h. c. Wolfgang Leese for the period from February 1, 2010, through to June 30, 2011, as Chief Executive Officer and Chairman of the Executive Board.

April

The Salzgitter Group presents its Steel and Technology divisions to customers and partners at the Hanover Trade Fair. The trade fair stand, the central block of which was designed using 700 meters of steel beams from the Group Company Peiner Träger GmbH, was an exhibit in itself.

Ford confers the Q1 Award on Salzgitter Europlatinen GmbH. This prize is awarded to suppliers fulfilling the highest standards with regard to quality and delivery performance, as well as guaranteeing an excellent technical standard.

May

The difficult economic situation and accounting-related precautionary measures impact the result of the first quarter of the financial year 2009. The 23 % participation in Aurubis AG, Europe’s leading copper manufacturer, included at equity in the group of consolidated companies for the first time, contributes very gratifying after-tax earnings of € 23.7 million to the quarterly result. The downturn in order intake and prices appears to have bottomed out in the European steel market. The market for flat steel in particular sees notable reductions in inventories, with the result that new orders begin to rise markedly from the end of May onwards. On May 27, the General Meeting of Shareholders of Salzgitter AG approves payment of a dividend of € 1.40 per share.

June

Sigmar Gabriel, Germany’s Federal Minister of the Environment, makes a statement on EU emission trading on the occasion of his visit to Salzgitter’s steel mill. He clearly states that German steel locations must not be put at a disadvantage in EU emission trading in an international comparison.

For this reason, he proposes that special regulations for sectors of industry, such as steel, must be enforced until there are equitable international regulations on competition. With reference to Salzgitter as a ”highly efficient steel location”, Gabriel does not envisage any urgent, lasting potential for lowering CO₂ emissions in the next few years.

July

After a 3.5-week period of downtime over the summer, Salzgitter Mannesmann Grobblech GmbH takes up production in its Mülheim plate rolling mill at the end of July. During this period numerous repairs were made, alongside the commissioning of a major investment project. These measures have enhanced the mill’s performance delivering notable quality and cost advantages, as well as positive effects on the environment.

August

Half-year results 2009: The results of the Salzgitter Group reflect the considerable burden from the impact of the global economic and financial crisis, above all in the Steel, Trading and Technology divisions.

The new ”Niedersachsenkai”, part of the River Weser port of Brake, is inaugurated. Salzgitter AG supports work on further extension by granting a loan.

September

No innovation, no future: The Duisburg Location of Salzgitter Mannesmann Forschung, the central research company of the Salzgitter Group, had its 75th anniversary. The renowned Mannesmann Forschungsinstitut (research institute), its forerunner, was founded in 1934. Salzgitter AG invests in a globally unique technology dedicated to near net-shape steel casting. Compared with conventional steel manufacturing, belt casting technology (BCT^®) differentiates itself through substantial energy savings and CO₂ reductions. As part of an environmental innovation program, the German Federal Ministry of the Environment, Conservation and Nuclear Safety is supporting the project through an investment grant of € 19 million. Almost 300,000 children and young people visit the second IdeenExpo. Salzgitter AG promotes the event as a premium sponsor and is actively committed through its creative ideas, workshops and interactive exhibits under the slogan: ”What would the world be without metal?”

October

Prof. Dr.-Ing. h. c. Wolfgang Leese, Salzgitter AG’s Chief Executive Officer, is appointed to the Supervisory Board of Aurubis AG (formerly Norddeutsche Affinerie AG).

Salzgitter AG takes advantage of the favorable environment in the capital market and places a convertible bond worth € 296.45 million through its Dutch subsidiary Salzgitter Finance B.V. The issue serves to diversify the Salzgitter Group’s sources of finance.

November

The Salzgitter Group records a perceptible improvement in the results in the third quarter. The effects of the global economic crisis are, however, still evident and provide further proof that the broad and sound business base of the company is extremely advantageous.

At an extraordinary meeting, the Supervisory Board appoints Dipl.-Wirtsch.-Ing. Johannes Nonn as the new Executive Board member responsible for the Steel Division. He is the successor of Dipl.-Ing. Hans Fischer who, after nine years of successful work, is leaving the Group at the end of the year at his own wish.

December

The Salzgitter AG acquires a blocking minority in the copper producer Aurubis AG: As of December 15, 2009, Salzgitter AG holds 10,323,640 shares of Aurubis AG, corresponding to a shareholding of 25.26 % of the nominal capital of that company, via its subsidiary Salzgitter Mannesmann GmbH.

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