Germany-based steelmaker Salzgitter Group’s has announced its preliminary figures for the first quarter of the financial year 2020. Salzgitter stated that the coronavirus outbreak did not affect the company’s first quarter results on a large scale but it anticipates a significant deterioration and a considerable pre-tax loss in the financial year 2020.
Salzgitter Group has reported a pre-tax loss of €31.4 million for the first quarter of the financial year 2020 when compared to a €125.9 million pre-tax profit recorded in the first quarter of the previous year. Besides, in the given period, its external sales fell to €2.1 billion from €2.3 billion recorded in the first three months of 2019, due to declines in selling prices.
The company also said that global restrictions on economic activity will determine the results of the future quarters. Accordingly, it plans to temporarily reduce production at many of its subsidiaries in May.