Concerns over Europe's continuing debt crisis, stagnating
development in many industrialised nations and weakening growth
in Asia have caused German longs producer Saarstahl to adopt a
cautious outlook for 2012.
Environmental regulations are also weighing heavily on
Saarstahl's outlook, the company said in its earnings statement
for 2011 released on Wednesday May 9.
"The Saarstahl Group is greatly concerned about the further
burden placed on it by the energy and climate politics in
Germany and the EU, as well as the planned EU guidelines for
[the carbon] emission trade," the company said.
Saarstahl noted its own economic and environmental concerns as
it reported earnings before interest, taxes, depreciation and
amortisation (Ebitda) for 2011 of €354 million ($460
While the results were down by 36% from the €553 million
posted for 2010, Saarstahl noted changes in Germany's
"The very good result for 2010 was affected by high income from
investment and the positive effects of changes in the
accounting regulations," the company said.
Group revenues rose by 16.4% to €2.67 billion from
€2.3 billion, Saarstahl noted.
"Germany continues to be Saarstahl's most important sales
market but, in 2011, it was possible to increase exports to
third-party countries (Nafta, Asia and the rest of the world),"
the company said.
Saarstahl's investments for 2011 totalled €122 million,
more than double the €56 million that it undertook for
"The emphasis was on concluding the modernisation of the bar
steel centre in Nauweiler and new construction of secondary
metallurgy," the company said.
Saarbrucken-headquartered Saarstahl in southwest Germany has
production sites in Neunkirchen, Burbach and Völklingen,
which can produce a total of 2.66 million tpy of low-carbon and
alloyed long products, including bloom, billet, rebar, wire
rod, merchant bar and beams.
The company also produces forged products at its
Völklingen site for the automotive, aerospace, nuclear and
conventional energy sectors.