JSE-listed Evraz Steel has achieved a turnaround in the first half of the 2013 financial year, narrowing its headline loss to R10-million, compared with the loss of R455-million recorded during the first half of 2012.
The group, which had taken “significant steps” to mitigate the cost structure of the company and other ongoing challenges, posted a net loss of R10-million for the interim period under review, improving from the R376-million loss of the six months to June 2012.
Despite labour instability, the health of the market and production stability threatening the operations of Evraz, operating profit returned to black, reaching R49-million during the half-year under review, owing to increased sales, higher vanadium prices and a reduction in costs, compared to a loss of R200-million in the corresponding period the year before.
The earnings before interest, tax, depreciation and amortisation for the period reached a positive R199-million, compared to a R170-million loss in the prior corresponding period.
Revenue increased from R2.5-billion in the first half of last year, to R2.9-billion in the period under review.