Shipments of iron ore products were on par with last year and amounted to 6.5 (6.5) million tonnes. Production of iron ore products was down 1% to 6.7 (6.8) million tonnes.

Net sales decreased 19% to MSEK 6,693 (8,239) and operating profit fell 30% to MSEK 3,317 (4,729). In comparison with the same period last year, production costs are unchanged. Lower iron ore prices led to a decrease in the gross profit margin of circa 7 percentage points to 53%.

JULY-SEPTEMBER
1. Net sales decreased 19 per cent to MSEK 6,693 (8,239).
2. Operating profit was MSEK 3,317 (4,729).
3. Profit before tax was MSEK 3,372 (4,582).
4. Profit for the period amounted to MSEK 2,475 (3,408).
5. Operating cash flow amounted to MSEK 221 (2,486).
6. Shipments of iron ore products for the quarter amounted to 6.5 (6.5) million tonnes.

JANUARY-SEPTEMBER
1. Net sales decreased 8 per cent to MSEK 20,593 (22,447).
2. Operating profit was MSEK 9,732 (11,565).
3. Profit before tax was MSEK 10,070 (11,533).
4. Profit for the period amounted to MSEK 7,419 (8,520).
5. Operating cash flow amounted to MSEK 3,988 (5,471).
6. YTD shipments of iron ore products amounted to 18.8 (18.9) million tonnes.

Mr Lars-Eric Aaro president & CEO said “From a global perspective, slower growth in China has led to reduced demand for steel. A reduction in steel production and steel producers’ iron ore stock reductions have curbed global sales of iron ore. Market fundamentals combined with the financial market’s expectations of lower growth in China have resulted in declining and more volatile spot prices for iron ore. Demand for steel in Europe remains low and steel producers are still producing at reduced capacity, while contending with poor profitability and overcapacity. This uncertainty is caused by weak confidence in economic growth in Europe and the debt crisis. However, LKAB is planning for full production for the remainder of 2012.”

Source - LKAB

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