Feedback

Manufacturing news

Subscribe to industry newsletters

Bizcommunity has over 400 industry contributors and we always welcome further contributions and contributors.
Advertise with us
Advertise & RatesMy Account
Company press officeList company
Recruitment packagesSubmit job ad
Download ratecard
Manufacturing news

Evraz loses as steel demand drops

Steel producer Evraz Highveld Steel and Vanadium (EHS) made a headline loss of R800m in the nine months to September thanks to weak demand in an ailing world economy and extensive industrial action.
"The main reason for the decrease in profitability is lower production and sales volumes during the four-week strike by National Union of Metalworkers members and the subsequent difficult ramp-up period thereafter‚" the company's chief executive‚ Michael Garcia said.

"We have also seen slow sales in various markets‚" he said.

Earnings before interest‚ taxation‚ depreciation and amortisation for the period amounted to a loss of R485m‚ compared with a R41m profit for the same period in the nine months to September last year.

Group sales revenue decreased to R3.32bn compared with R4.2bn for the previous period.

The cast steel output for the period decreased 16% to 406‚072 tons‚ mainly due to the four-week strike.

Production of long products fell 8% to 152‚000 tons for the period compared with the same period in 2011. The production of flat products decreased 22% to 171‚682 tons due to the reduced availability of cast steel.

The company's main focus was to continue with initiatives to achieve profitable production in a sustainable, safe manner and to reduce its costs so it can return to a profitable position‚ it said.

"However‚ it remains a challenging goal under the current conditions of increasing input costs. The global over-supply situation has not changed significantly‚ with the local market remaining weak‚" Garcia said.


SOURCE

I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
    
 
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.

News