SALZGITTER (dpa-AFX) - Following a subdued first half of the year, steel group Salzgitter expects its performance to remain gloomy in the coming months. A weaker second half of the year is to be expected, the company announced in Salzgitter on Friday when presenting final figures. The political and economic environment remains volatile. Nevertheless, thyssenkrupp's competitor is sticking to its forecast for 2023.

The company continues to expect sales of 11.5 to 12 billion euros for the current year. Management under Group CEO Gunnar Groebler sees pre-tax earnings at 300 to 400 million euros. In view of lower steel prices and lower demand, the company expects a significant decline compared with the previous year.

"In view of the current considerable economic challenges in our core market Germany, maintaining the sales and earnings forecast is not a foregone conclusion," CFO Burkhard Becker said, according to the statement. Thus, the diversification of the business areas as well as the ongoing cost-cutting program should help to achieve the targets.

The share, which is listed in the small-cap segment SDax, lost almost 2.0 percent around noon. Analysts at Baader Bank did not see any positive impetus in the half-year report, after the Group had already presented key data.

In the first six months to the end of June, Salzgitter's sales fell 12 percent to 5.8 billion euros due to declining shipments and lower average lots of many rolled steel products. Earnings before interest, taxes, depreciation and amortization (Ebitda) slumped to 461 million euros from 1.1 billion euros previously.

Salzgitter thus confirmed the key figures published at the end of July, which had fallen short of expectations. Below the line, Salzgitter earned 191.8 million euros, compared with 781 million a year earlier. The shareholding in the copper group Aurubis also brought Salzgitter less than in the previous year. In addition, investment in the ongoing Salcos transformation program, with which the steel manufacturer aims to make its production less harmful to the climate, had a negative impact./nas/tav/jha/