Salzgitter shares drop on lower H1 sales despite profit gain

Salzgitter’s shares fell on Tuesday after the German steelmaker reported a 10% year-on-year decline in first-half sales, reflecting weaker demand in key markets. The company’s net profit rose, however, driven by a dividend from its stake in copper producer Aurubis, which offset lower steel prices and volumes.

The group posted first-half revenue of €4.2 billion, down from €4.7 billion a year earlier, as demand in automotive and construction sectors softened. Operating profit before special items fell 15% to €240 million, while net profit increased to €180 million from €150 million in the same period last year.

Salzgitter attributed the profit improvement to a €50 million dividend received from Aurubis, its largest shareholder with a 20% stake. The company also highlighted cost reductions and efficiency gains as partial offsets to weaker market conditions.

The steelmaker maintained its full-year guidance, citing resilient order books in energy and infrastructure segments. Shares in Salzgitter were down 3.2% at €28.50 in early trading, underperforming the broader European steel index.

Analysts noted that while the Aurubis dividend provided a temporary boost, structural challenges in the steel industry—including high energy costs and weak pricing—remain a headwind.