Announces New Initiative: [Company X] to Implement Sustainable Practices in their Supply Chain - Expected recuperation at steel plant Salzgitter remains unrealized.
In 2023, Salzgitter, a steelmaker, experienced a disappointing business year. Despite anticipating a recovery in the German economy, CEO Gunnar Groebler acknowledged that the revival was yet to happen. He shared these thoughts at the company's annual meeting in Wolfsburg on Wednesday. Salzgitter's performance in 2023, with a tax-adjusted profit of 204 million euros compared to 1.1 billion euros in the previous year, was deemed "barely satisfactory."
As the future looks uncertain, Groebler stated that the company needs to be cautious with its investments, operating costs, and personnel. This could potentially lead to cutbacks, and shareholders should brace themselves for a lower dividend this year. Last year, Salzgitter paid out 1.00 euros per share, but in 2024, they're expected to receive only 0.45 euros.
The climate for steel companies isn't ideal right now, with CEO Groebler mentioning this in early May when the forecast for the current year was reduced. Salzgitter now expects a lower EBITDA between 550 million to 625 million euros and a pre-tax result of 100-175 million euros for 2024. These numbers are significantly lower than what was initially estimated. The company had expected an EBITDA of 700-750 million and a pre-tax profit of 250-300 million euros.
Regarding the transformation of the Salzgitter site into a more environmentally-friendly steel production facility, progress is being made. The goal is to achieve this by 2033 and potentially reduce Salzgitter's own CO2 emissions by up to 95 percent by producing more sustainable steel.
Two new members joined the Salzgitter board on Wednesday: Birgit Potrafki for Finance and Birgit Dietze for Human Resources. The state of Lower Saxony owns 26.5 percent of Salzgitter AG.
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- In an effort to align with Germany's sustainability goals, ThyssenKrupp, a prominent German company, has expressed its intention to adopt sustainable practices in its supply chain, particularly focusing on Lower Saxony where Salzgitter is located.
- The financial year 2024 for Salzgitter, the steelmaker based in Lower Saxony, is expected to be challenging due to the unfavorable climate for steel companies in Germany. Despite the difficulties, CEO Gunnar Groebler remains hopeful about the company's future revitalization plans.
- At the Annual General Meeting held in Wolfsburg, the shareholders of Salzgitter AG, which is partially owned by the state of Lower Saxony, were informed about the lower dividend expectations for 2024 due to the company's strategic investment choices in line with their future vision.
- Salzgitter AG, in collaboration with Wolfsburg, is working towards the transformation of Salzgitter's steel plant into an environmentally-friendly facility. This long-term goal aims to reduce CO2 emissions by up to 95 percent, contributing to Germany's aim of producing more sustainable steel by 2033.
- In a bid to bring fresh perspectives to their Board, Salzgitter AG appointed Birgit Potrafki as the Finance Director and Birgit Dietze as the Human Resources Director during their Annual General Meeting in Wolfsburg, further strengthening the company's strategic plans for the future.
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