Evraz Highveld posts FY loss

13th March 2013

By: Creamer Media Reporter

  

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Steel and vanadium slag producer Evraz Highveld Steel and Vanadium on Wednesday reported a R943-million after-tax loss for the 2012 financial year, compared with a profit of R45-million in 2011.

Industrial action in the third quarter of last year and subsequent ramp-up problems mainly contributed to the poor results, with the company reporting an earnings before interest, tax, depreciation and amortisation (Ebitda) loss of R697-million, compared with a positive Ebitda of R153-million the year before.

The group further reported a headline loss of R1.02-billion, compared with a loss of R15-million the year before.

Revenue decreased to R4.3-billion, compared with R5.58-billion in 2011.

Liquid iron production for 2012 decreased by 6% to 620 035 t and cast steel output by 15% to 571 787 t.

Evraz highveld stated that the most significant negative impact on output had resulted from a four-week strike by the majority trade union, stemming from an introduction of cost saving measures, which included a reduction in overtime hours.

Production of long products decreased by 9% to 204 701 t owing to insufficient steel availability, while the production of flat products decreased by 16% to 242 836 t owing to the reduced availability of casted steel, and a reheat furnace breakdown at the end of the year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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