Euro crisis hits profits at steel maker Salzgitter

(BERLIN) - Salzgitter, Germany's number-two steelmaker, blamed the eurozone debt crisis on Wednesday for a disappointing set of results as it swung to a net loss in the third quarter of the year.

"European steel activities were impacted by the tense economic situation in the countries of southern Europe that have been particularly hard hit by sovereign debt and structural problems," the firm said in a statement.

In addition, "the activities of German steel processors and traders have also recently been increasingly affected by the more pessimistic business outlook."

This gloomy industry outlook resulted in a net loss of 25.7 million euros ($32.8 million) in the third quarter of 2012, compared to a profit of 21 million euros in the same period last year.

Over the nine months of the year so far, Salzgitter said it had sustained a loss of 48.2 million euros, compared to profits of 114.7 million euros in 2011.

For the full year, Salzgitter said it was sticking to its target of flat sales and forecast it would just about break even over the course of 2012.

Salzgitter stock sold off on the results, with shares losing more than one percent on the MDAX index of mid-sized German companies. The broader index was marginally in the red.