BERLIN, Aug. 13 (Xinhua) -- Salzgitter profits more than doubled during the first half of 2018 in spite of the recent imposition of punitive U.S. tariffs on European steel imports, earnings figures published on Monday by the German steel producer showed.
Gross revenue held steady at 4.6 billion euros (5.3 billion U.S. dollars) between January and June 2018, while net profits rose significantly to 135.4 million euros -- compared to 64.7 million euros in 2017 -- during the same period. Profits were at their highest level since 2008. The company mainly attributed the development to cost savings and booming sales of flat steel in its European home market.
Nevertheless, Salzgitter chief executive officer (CEO) Joerg Fuhrmann warned at the presentation of the figures that U.S. President Donald Trump's protectionist policies continued to pose a serious risk to the steel industry.
According to Fuhrmann, "unpredictable trade policy developments" could hurt Salzgitter's earnings, as well as derail "fragile growth" in the global economy.
As a consequence, Salzgitter merely reaffirmed an earlier annual forecast instead of raising its outlook in response to the strong half-year performance. The company now expects to record pre-tax profits of between 250 and 300 million euros in 2018 alongside slight revenue growth to more than nine billion euros.
As of June 1, European producers are now subject to a 25-percent tariff on steel and a 10-percent tariff on aluminium exports to the United States as part of Trump's "America First" doctrine. The EU has so far reacted to U.S. imposition of punitive tariffs on imports of steel and aluminum from the bloc by filing a World Trade Organization lawsuit against Washington and unveiling retaliatory measures targeting specific U.S. exports.
On Sunday, German economy minister Peter Altmaier drew attention once again to the harmful impact of unilateral economic measures adopted by Trump. "This trade war slows and destroys economic growth, while producing new uncertainties", he told Bild am Sonntag newspaper.
Aluminium and steel are both important resources for German industrial manufacturing companies. Nevertheless, business representatives and economic think tanks have so far downplayed the implications of the new U.S. tariffs, while highlighting the greater risk posed by potential additional tariffs on car imports threatened by Trump as well.
Salzgitter recorded a steel output of roughly seven million tons in 2017, making it one of Europe's largest producers.
