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LKAB Posts Surging Sales, Income For Jan - Sep 08
= Strong selling prices play significant contributor =
Sweden's state-owned mining and resource company LKAB announced October 30 its results for the January to September period of 2008, demonstrating surging sales at 17,609 million Swedish kronor (MSEK; approximately US$2,297 million at US$ = 7.7 SEK), representing an increase of 42.1% from the previous corresponding period. The buoyant increase in revenue is accounted for by the following factors: price 66%, currency -22%, and volume/product mix -2%. The significant rise in commodity prices doubled operating income to 9,846 MSEK (approximately US$1,278.7 million). Profit after tax rose 87.3% to 6,890 MSEK (approximately US$894.81 million).

[Iron ore production and deliveries]
LKAB has three iron ore mines and iron ore processing facilities including pelletizing plants at Kiruna, Malmberget, and Svappavaara in the northern part of Sweden, and is managing Narvik port located in Norway for iron ore shipment.

Iron ore production during the nine month period 2008 dropped 0.3 million tonnes (Mt) or 1.6% from the previous corresponding period to 18.0 Mt, associated with to the fire that broke out in February on the transformer in the concentrate plant in Malmberget. After an extensive clean-up and repair work, operation returned to normal early in April.

[LKAB's vision on markets]
Regarding the iron ore market in the second half year and beyond, LKAB has the following views:

The growth rate of global iron ore production has weakened and is expected to grow by reduced rates in 2008 as well as 2009. China's iron ore production, however, is expected to grow at a high rate of 16.6% to 398 Mt in 2008, further increasing 8.1% to 433 Mt in 2009. Despite an increase in domestic production of iron ore, China will have to continue to import large volumes.
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last modified : Thu 06 Nov, 2008 [10:21]
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