Bloomberg News

ThyssenKrupp, Voest Slump as Salzgitter Scraps Break Even

June 27, 2012

ThyssenKrupp AG (TKA) and Voestalpine AG (VOE), Germany’s and Austria’s largest steelmakers, slumped after Salzgitter AG (SZG) scrapped guidance for a break even for its steel unit this year.

Salzgitter plummeted as much as 7.8 percent and was trading down 6.3 percent at 1:45 p.m. in Frankfurt, heading for its lowest close since September 2005. ThyssenKrupp fell 0.8 percent to 11.925 euros in Frankfurt, while Voestalpine declined 1.3 percent to 20.4 euros in Vienna.

Germany’s second-biggest steelmaker said yesterday after markets closed that given the deteriorating economic outlook for Germany and the euro area, many steel processors and traders were expecting business to stagnate, adopting a “wait-and-see stance.” This in turn has had a “notably negative” impact on demand for rolled steel, Salzgitter said.

The steel unit accouned for about 30 percent of Salzgitter’s sales last year. The company’s other four units -- Tubes, Trading, Services and Technology -- “are developing in line with the results forecast,” Salzgitter said.

To contact the editor responsible for this story: Zoe Schneeweiss at zschneeweiss@bloomberg.net


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