FRANKFURT (Reuters) - Salzgitter (SZGG.DE), Germany’s second-largest steelmaker after Thyssenkrupp (TKAG.DE), on Thursday slashed its full-year outlook, citing increased risk provision ahead of an expected cartel fine.
“Along with other companies, Salzgitter AG is the subject of investigations on the grounds of suspected cartel arrangements regarding heavy plate and strip steel products,” the group said, adding it assumed the process could be brought to an end soon.
As a result, Salzgitter will increase risk provisions by about 140 million euros ($153 million) as per Sept. 30, causing it to expect a mid double-digit million euro loss before taxes this year. It previously expected earnings before taxes of 125 million to 175 million euros.
Shares in the group traded 2.6% lower at 1212 GMT.
Reporting by Christoph Steitz; editing by Thomas Seythal