Salzgitter Gains Most in 9 Months on Earnings: Frankfurt MoverTino Andresen
Salzgitter AG jumped the most in nine months in Frankfurt after Germany’s second-largest steelmaker reported a smaller pretax loss in the first quarter.
Salzgitter rose 4.7 percent, the biggest gain since Aug. 9, to close at 32.685 euros. Volume was almost triple the three-month daily average.
Investors “realize that Salzgitter is on the verge of a turnaround,” Marc Gabriel, an analyst at Bankhaus Lampe KG, said by phone from Dusseldorf. “The share price is extremely favorable. It corresponds to half the book value.”
The pretax loss shrank 46 percent to 8.7 million euros ($12 million) from a year earlier on sales of 2.3 billion euros, the Salzgitter-based company said late yesterday in a statement, reiterating that it expects to break even, before taxes, in 2014.
European Union steel demand is seen rising 3.1 percent this year and 3 percent in 2015 as the industry recovers, the World Steel Association said April 9. German April crude steel output grew 4 percent, the Wirtschaftsvereinigung Stahl national steel association said today in a statement. Kloeckner & Co. SE said yesterday it swung to profit after 10 straight quarterly losses.