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Q1 2014 TURNOVER
Turnover1 (€ million) |
Q1 2013 | Q1 2014 |
ERAMET Manganese | 388 | 326 |
ERAMET Nickel | 181 | 166 |
ERAMET Alloys | 231 | 224 |
Holding & eliminations | (3) | (2) |
ERAMET Group | 797 | 714 |
1Includes the Group's share of turnover of joint ventures. The reconciliation with the turnover of financial statements reported in accordance with IFRS is presented in the appendix. |
Taking these maintenance operations in Gabon and Norway into account, manganese ore and manganese alloy production by ERAMET Manganese declined 7% and 16%, respectively, in first-quarter 2014, compared with first-quarter 2013.
Global carbon steel output rose approximately 2.5% in the first quarter of 2014 compared with the same period last year. The same pace of growth was seen for both Chinese and non-Chinese production. In China, the slower growth in Chinese output is mainly due to a stage of destocking, with consumer sectors recording substantial growth in the same period. CIF China* manganese ore spot prices slipped 7% in Q1 2014 compared with the same period in 2013.
Outside China, the manganese alloy market ticked up and prices gradually recovered from July 2013.
Nickel metallurgical production at the Doniambo plant in New Caledonia rose 5% in first-quarter 2014, compared with first-quarter 2013.
In the same period, nickel prices on the London Metal Exchange gained 5% compared with levels in Q4 2013, but were still 15% down on average at an abnormally low average level of USD 6.64/lb.
Global stainless steel production moved up 8% in the first quarter of the year compared with Q1 2013.
Indonesia's move to ban the export of ore not processed or refined locally as of January 2014 creates the conditions for a gradual rebalancing of the market, on the heels of two years of significant surplus. LME nickel prices advanced in mid-April to top USD 8/lb.
The resilient performance of activities linked to a stronger aerospace market (up 4% year-on-year) was not sufficient to fully offset the decline in other activities, particularly the 33% slump in turnover for the energy sector.
* Source: CRU |
ERAMET's financial position was solid at end-March 2014 with very substantial liquidity. Net debt stood at approximately 15% of equity, which represents a slight increase over end-2013. Cash requirements will reduce very significantly in the second quarter of 2014, benefiting from net cash flows from operating activities.
ERAMET group turnover should pick up in Q2 2014, compared with Q1 2014.
Nonetheless, in view of the relative movement in nickel and manganese prices, current operating income for first-half 2014 should be approximately the same as in second-half 2013.
The measures introduced to improve productivity and trim costs at all levels of the Group will continue during 2014.