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| Sweden's LKAB's Results For Jan - Mar Quarter 2009 |
| = Large production cuts associated with lower demand plunge net sales, operating income = |
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Sweden's state-owned mining and resource company LKAB has announced its operational results for the January to March quarter of 2009. Reduced production associated with lower commodity demand during the period has resulted in significant decline in production and deliveries; production down 32.7% from the same period last year to 3.70 million tonnes (Mt), and deliveries down 46.3% to 2.90 Mt. This brought about significantly lower net sales at 2,308 million Swedish kronor (MSEK; down 53.8%), and operating income at 165 MSEK (down 94.1%) mainly as a result of the decline in sales in the Mining Division. Exchange rate gains that amounted to 194 MSEK mitigated declining rate as well as amount of net income (251 MSEK, down 86.6%) as compared with operating income (165 MSEK, down 94.1%). LKAB is adapting itself for lower demand in the foreseeable future. The Company will suspend iron ore production for eight weeks during this summer. However, it will continue operation of the pelletizing plant in Svappavaara during the summer period, and after that will close it together with the MK3 pelletizing plant in Malmberget, up to and including the second quarter of 2010. The long-term strategic investments in logistics and new main levels in Kiruna and Malmberget will be realized, even though commissioning dates may be postponed. LKAB's financial position remains strong. The investments in new pelletizing plants in Malmberget and Kiruna have been completed in line with the Company's growth strategy. Ongoing investments of about 22 billion SEK in, among others, new main levels will secure future mining operations in Malmberget and Kiruna until 2020 and 2030, respectively, according to the Company. |
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| last modified : Thu 07 May, 2009 [11:22] |
