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| HOME >> Topics List >> August, 2009 >> 25 (Tue) |
| LKAB Posts 222 MSEK Net Loss For 1H09 |
| = Meanwhile keeps on bullish outlook for future steel demand = |
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Sweden's state-owned mining and resource company LKAB has announced its operational results for the January to June period of 2009, according to which the Company incurred financial losses with worsened performance overall compared with the previous half year: Net sales at 4,029 million Swedish kronor (MSEK), Operating loss 489 MSEK, and Loss after tax 222 MSEK. Lars-Eric Aaro, Acting President and CEO commented that for the year as a whole, the Company's production is still far below capacity, but the rate of production will be much higher during autumn than it was during spring. Likewise he added that despite the ongoing uncertainty with respect to demand for LKAB's products, the long-term outlook remains unchanged; the world will need steel in the future; and LKAB will continue to deliver high-quality, environmentally efficient iron ore products to the steel industry and other minerals to many different sectors and industries. According to LKAB, the investments in new pelletizing plants in Malmberget and Kiruna have been realized in accordance with the Company's growth strategy. Work on the ongoing strategic investments in new main levels in the mines in Kiruna and Malmberget to secure future access to crude ore continue as planned. Investments in the upgrading of the logistics structure, such as the new harbor in Narvik and new locomotives and ore cars, are expected to be completed during 2010. [Higher operational rate expected in second half] While sluggish operations are protracted in the steel industry of the Company's major market Europe, LKAB has in recent months seen an increase in orders from other regions for deliveries during the autumn. Among other business, the Company has reached agreements with Chinese customers for deliveries during the period 2009 - 2011. At the same time, LKAB's sales to customers in the Middle East have improved in recent months. |
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| last modified : Fri 28 Aug, 2009 [11:59] |
