German steel giant Salzgitter AG on Tuesday reported pre-tax profit of €17 million ($18.3 million) for the first quarter, significantly lower than the previous year's €126 million.
The company also cut its full-year outlook.
"As far as the remainder of the year is concerned, there are also indications that the German economy will not be able to keep pace with the upswing in other industrial nations. The signs of recovery are more hesitant and weaker than originally anticipated," the company said in a statement.
Earnings before interest, taxes, depreciation and amortization (EBITDA) declined to €126 million from €290 million last year.
Sales for the quarter dropped to €2.7 billion from €3 billion in the previous year. For the full year, the company now expects sales of around €10.5 billion, compared with the previous outlook of €10.5 billion to €11 billion.
EBITDA for the year is now expected between €550 million and €625 million, down from €700 million to €750 million as previously expected.
Further, the pre-tax profit outlook has been lowered to €100 million to €175 million from €250 million to €300 million.
Detailed first-quarter results are scheduled to be reported on May 13.
