LKAB has announces interim report for second quarter and first half of 2011.
April to June 2011 highlights:
Net sales amounted to SEK 8,146 million
Operating profit amounted to SEK 3,958 million
Pretax profit amounted to SEK 4,081 million
Profit after tax amounted to SEK 2,877 million
Earnings per share amounted to SEK 4,110
Cash flow from operating activities amounted to SEK 1,279 million
Deliveries from the Mining Division increased by 13%
Dividends amounting to SEK 5,000 million paid to the owner
January to June 2011 highlights:
Net sales increased by 12% to SEK 14,208 million
Operating profit amounted to SEK 6,836 million
Pretax profit amounted to SEK 6,951 million
Profit after tax amounted to SEK 5,113 million
Earnings per share amounted to SEK 7,304
Cash flow from operating activities amounted to SEK 2,985 million
Dividends amounting to SEK 5,000 million paid to the owner
Deliveries of iron ore products reached 6.9 million tonnes during the second quarter, an increase of 13%. Production of iron ore products amounted to 6 million tonnes. Production was somewhat lower than during the corresponding period last year, which is due mainly to disruptions in mine production.
An intensive effort is under way to realize LKAB 37, LKAB's strategic program of investment to reach an annual capacity of more than 37 million tonnes of finished products by 2015, which will build a larger, stronger LKAB.
During the quarter, LKAB appealed the Environmental Court of Appeal’s ruling on the open pit operation at Gruvberget, Svappavaara, and applied for a new environmental permit with the Supreme Court. Pending a final decision, operations will continue on the basis of an enforcement order from the Environmental Court.
Mr Lars Eric Aaro president & CEO of LKAB said "It is pleasing to report that our deliveries during the second quarter were 13% higher than during the corresponding quarter in 2010. The recent financial unrest has, thus far, had no impact on demand for LKAB's products. The financial outcome during the quarter has remained strong, although somewhat weaker than during the corresponding period in 2010 due to a lower dollar rate. New iron ore prices, effective as of the second quarter of 2011, were finalized during the second quarter and imply an average price increase of 20% on all products."
