Ruukki Group Plc has announced interim report for Q3 2011 ended September 30th 2011.
Highlights:
Production increased by 176% to 86,401 tonnes
Revenue from continuing operations up by 46.1% to EUR 42.4 million
EBITDA from continuing operations was EUR -2.7 million
EBITDA margin was -6.3%
EBIT from continuing operations was EUR -9.6 million
Profit for the period from continuing operations at EUR -6.5 million
Cash flow from operations was EUR -5.4 million
Liquid funds at September 30th 2011 were EUR 74.2 million
Key Figures
| Item | Q3 '11 | Q3'10 | YoY | YTD '11 | YTD '10 | YoY | FY '10 |
| Revenue | 42.4 | 29 | 46.1% | 121.8 | 98.6 | 23.5% | 123.3 |
| EBITDA | -2.7 | -1.6 | 2.5 | -1.5 | -8.4 | ||
| EBITDA margin | -6.3% | -5.4% | 2.0% | -1.5% | -6.8% | ||
| EBIT | -9.6 | -8.7 | -18.5 | -21.4 | -75.6 | ||
| EBIT margin | -22.5% | -29.9% | -15.2% | -21.7% | -61.3% | ||
| Earnings margin | -19.9% | -31.2% | -15.0% | -22.3% | -61.8% | ||
| Profit for the period | -6.7 | -2.6 | 33.4 | -6.7 | -51.1 |
In EUR million
Continuing operations include the Speciality Alloys business segment, the Ferroalloys business segment and unallocated items that consist of Group headquarters and other Group companies, which do not have significant business operations. Discontinued operations include the house building, pallet and sawmill businesses.
Mr Thomas Hoyer CEO of Ruukki Group Plc said that "The third quarter was significantly impacted by the downturn in global economic sentiment and the market for chrome products was an early casualty. Charge Chrome products were most affected, with prices falling about 15% compared to the previous quarter, as many buyers did not restock after the seasonal European summer slowdown. The Group's diversified product range offered some protection against the weakening Charge Chrome prices as the demand for our speciality alloys products remained relatively firm and prices were comparable to the second quarter 2011. Whilst the South African rand softened significantly during the quarter, it was not sufficient to offset the impact of falling chrome prices. At an operational level, TMS, EWW and the Stellite mine delivered a strong production result, in spite of the annual maintenance shutdowns."
He added that "Looking ahead, the outlook for the fourth quarter is bleak, overshadowed by the uncertainty in the global financial markets and in the Eurozone, and the possibility of a global recession cannot be discounted. In light of this, the Group has taken the decision to adjust its production levels accordingly and two of the four furnaces in the Ferro Alloys business have remained switched off since July's maintenance shutdown. Our strong cash position enables the Group to weather this current slowdown and even potentially take advantage of the distressed pricing of mining assets in the execution of our growth strategy."
