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FRANKFURT (dpa-AFX Broker) - A lowered sales target of Salzgitter has put the shares of the steel group under selling pressure on Wednesday. After significant swings in both directions at the start of trading, the share price was under pressure in the further course. Most recently, the share price fell by 3.4 percent to 34.26 euros. This made it one of the weakest stocks in the SDax, which was down around 0.2 percent.

Salzgitter anticipates lower sales for the current year than at the end of April. The company anticipates lower earnings, particularly in steel production and trading. In the first quarter, sales fell significantly year-on-year due to declining shipments and lower average lots. However, the steel producer is sticking to its earnings target.

Analyst Dominic O'Kane from the bank JPMorgan had actually not expected any surprises, as the pre-tax result had been announced in advance and the annual targets had been confirmed in April. However, qualitative statements on the business now pointed to a significant deterioration in sales performance in steelmaking and trading.

With regard to the pre-tax earnings forecast, which remains at 300 to 400 million euros, the expert stressed that just under half of this had already been achieved after the first quarter. Therefore, the forecast suggests a cautious attitude of the management with regard to the second half of the year, the expert noted. On a positive note, he mentioned the development of cash inflows, which had exceeded his expectations.

Analyst Christian Obst of Baader Bank, on the other hand, sees little news after Salzgitter's previously published key data. He referred to the confirmed target for pre-tax profit and sees the steelmaker on a good path./edh/tih/mis

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