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Print- ERAMET group turnover down 6% for the first 9 months of 2013 compared with the same period in 2012, mainly as a result of lower nickel prices
- All-time record for manganese ore production in 3rd quarter 2013
- Manganese ore production increased 27% over first 9 months of 2013 compared with the same period in 2012
In the 3rd quarter of 2013, the ERAMET group's turnover totalled 754 MEUR, a 5% decrease compared with the 3rd quarter of 2012, mainly due to lower nickel prices, which were partly offset by positive trends in the manganese market and manganese ore production.
- ERAMET Manganese: turnover increased to 1,178 MEUR, up 4% for the first nine months of 2013 compared with the same period in 2012, up
6% in 3rd quarter 2013 vs. 3rd quarter 2012
Global carbon steel production rose 3% over the first nine months of 2013 compared with the same period in 2012 and 5% in the 3rd quarter of 2013 compared with the 3rd quarter of 2012. It was mainly driven by Chinese growth (+10% in the 3rd quarter of 2013 compared with the 3rd quarter of 2012).
Europe spot prices for manganese alloys (source:CRU) decreased 9% on average over the first nine months of 2013 compared with the same period in 2012 and by 12% in the 3rd quarter of 2013 compared with the 3rd quarter of 2012 because of global overcapacities.
ERAMET Manganese's alloy shipments increased 5% in the first nine months of 2013 compared with the same period in 2012 and 1% in the 3rd quarter of 2013 compared with the 3rd quarter of 2012.
Manganese ore inventory in Chinese ports gradually decreased again and is at the low levels of late 2012.
CIF China spot prices (source:CRU) for high grade manganese ore have recovered since the start of the year. They rose 12% to 5.49 USD/dmtu on average over the first nine months of 2013 compared with the same period of 2012 and 4% in the 3rd quarter of 2013 compared with 3rd quarter 2012.
External shipments of manganese ore and sinter rose 35% over the first nine months of 2013 compared with the same period in 2012 and 54% in the 3rd quarter of 2013 compared with 3rd quarter 2012.
Manganese ore and sinter production in Moanda (Gabon) increased 27% over the first nine months of 2013 compared with the same period in 2012 and 16% in the 3rd quarter of 2013 compared with 3rd quarter 2012.
An all-time record for manganese ore and sinter was achieved in the 3rd quarter of 2013.
- ERAMET Nickel: at 518 MEUR, turnover decreased 21% over the first nine months of 2013 compared with the same period in 2012,
down 23% in 3rd quarter 2013 vs. 3rd quarter 2012
Stainless steel production increased approximately 5% over the first nine months of 2013 compared with the same period in 2012.
The decrease in turnover is mainly due to LME nickel prices, which averaged 6.98 USD/lb. over the first nine months of 2013, a 13% drop compared with the same period in 2012, and fell 15% in the 3rd quarter of 2013 compared with the 3rd quarter of 2012.
This price decrease results from a significant oversupply of nickel and very high inventories.
This LME pricing level is especially low in relation to the production costs of a large part of the nickel industry.
Metallurgical nickel production in Doniambo (New Caledonia) decreased 6% over the first nine months of 2013 compared with the same period in 2012 and 3% in 3rd quarter 2013 compared with 3rd quarter 2012, in line with market oversupply.
- ERAMET Alloys: at 677 MEUR, turnover decreased 9% over the first nine months of 2013 compared with the same period in 2012, down 7% in 3rd quarter 2013 vs. 3rd quarter 2012
ERAMET Alloys' turnover with the aerospace sector grew 4% over the first nine months of 2013 compared with the same period in 2012, but non-aerospace activities (energy, tooling, etc.) were heavily affected by the economic environment, particularly as regards automotive markets.
In this context, ERAMET Alloys continues to implement its performance improvement programme.
- The ERAMET group's financial situation
Taking into account the payment of dividends to minority shareholders in the Group's subsidiaries and the now much lower amount of capital expenditure, in particular, the ERAMET group's consolidated net cash was slightly negative as of September 30th, 2013.
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