Key figures for the 2016 financial year for the Dillinger Group

 “We were able to post good utilization of plant capacities and higher sales despite a very unfavorable market environment. Nonetheless, our net sales and results came under massive pressure in the extremely competitive heavy plate market, despite sustained cost-cutting measures. Thanks to the “Dillinger 2020” agreement with the Works Council, we will be further consolidating efforts within the company to reduce costs and increase competitiveness, and thus to secure the economic future of the company’s location,” Fred Metzken, Dillinger Board of Management Spokesman, said at the Annual Press Conference.

Key figures

• As expected, Dillinger Group faced an especially difficult financial year in 2016
• Good utilization of plant capacities despite relining of blast furnace 4
• Consolidated net sales (€ 1,762 billion) declined from previous year (€ 1,838 billion) due to weak revenue growth
• “Dillinger 2020” agreement to secure company location

High overcapacities in the heavy plate market were accompanied by a further 58 % drop in utilization of capacities compared to the previous year at plants in the European Confederation of Iron and Steel Industries (Eurofer). As a result, non-European manufacturers continued the trend of increasing their market shares.  Heavy plate steel imports into the EU doubled between 2013 and 2016. The ongoing aggressive predatory competition has led to enormous pressure on revenue and margins. The price increases that set in during the second half of the year were not enough to compensate for the increases in raw material costs that began midyear.

Figures for the Dillinger Group for 2016:

• Production at the rolling mills in Dillingen and at the wholly owned subsidiary Dillinger France in Dunkirk rose to 1,882 million tons, compared to 1,856 million tons in 2015.
• Despite higher sales volumes, consolidated net sales fell due to low revenue levels from € 1,838 billion in the previous year to € 1,762 billion in 2016.
• Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 31 million (2015: € 118 million), and earnings before interest and taxes (EBIT) was - € 80 million (2015: € 10 million).
• The significantly negative earnings are primarily the result of enormous pressure on revenue and margins and higher expenses.
• In 2016, payments by the Dillinger Group to continue investment measures in fixed assets amounted to € 120 million (previous year: € 154 million).
• Despite the high investment spending, the equity ratio was 66 % of the balance sheet total.
• The focus of investments at Dillinger itself (€ 69 million) was the
  new continuous casting machine CC 6, which began operation in 2016 and with which the company wants to secure its technological advantage and develop an increasingly advanced product mix.
• A total of 5 109 people were employed at the Dillingen plant at the end of the financial year (31 Dec. 2015: 5 081). These employees worked at Dillinger itself, at Zentralkokerei Saar GmbH, and at ROGESA Roheisengesellschaft Saar mbH.
  A total 7 518 people are employed by the Dillinger Group (2015: 7 536).
• A total of 80 young people began vocational training at Dillinger in 2016 (2015: 65). As a result, the company employed a total of 236 trainees when all training class years are included.

Dillinger Group by the numbers:

 *) Total hot metal production by ROGESA Roheisengesellschaft Saar mbH, Dillingen, amounted to 3 980 T t (2015: 4 429 T t).

Your contacts:

Ute Engel, tel.: +49 (0)6831-473011, email: ute.engel@stahl-holding-saar.de

Ines Oberhofer, tel.: +49 (0)6831-472002, email: ines.oberhofer@stahl-holding-saar.de