Salzgitter reports Q1 earnings plunge, maintains outlook

(Reuters) - Salzgitter said on Monday its earnings in the first quarter of 2023 almost halved year-on-year as high energy costs and a pivot towards more climate-friendly production weighed on the German steelmaker.

According to preliminary results, the group generated earnings before interest, taxes, depreciation and amortization of 290 million euros ($318.45 million), compared to 548 million euros in the first quarter of 2022.

First-quarter profit before taxes fell around 60% year-on-year to 183 million euros.

The company said the quarterly results exceeded current capital market expectations.

"Irrespective of the strong start into the year, we maintain our sales and earnings forecast from March 27, 2023, due to the volatile political and economic environment," Salzgitter said in a statement.

The group is targeting sales of around 13 billion euros this year and pre-tax profit of between 300 and 400 million euros.

($1 = 0.9107 euros)

(Reporting by Anna Mackenzie and Hakan Ersen, Editing by Rachel More)