BNamericas reported that Chilean iron and steel group Compania de Aceros del Pacifico reported an USD 18.5 million net loss for the third quarter and a USD 52.5 million loss for the first 9 months of 2009 as compared to USD 269 million in profit for the first 3 quarters of 2008 due to lower prices for its products and less steel output.
No bottom line figure for the third quarter of last year was provided but CAP reported earnings of USD 160 million for the first 6 months of 2008, which would put last year's Q3 profits at USD 109 million. Revenues in January to September 2009 period shrank to USD 983 million from USD 1.61 billion while operational costs declined to USD 890 million from USD 1.22 billion.
CAP said that the loss in Q3 was 62.4% smaller than the loss in Q2 and highlighted the fact that the first three quarters of 2008 were the best January to September period in the company's history.
Mr Jaime Charles CEO of CAP said that "Although we continued to register losses in the Q3 period, we are calm because the results are a clear sign of market recovery and are a positive indication for the fourth quarter." He added that CAP expects to have record iron ore sales this year, while steel sales are to return to normal gradually.
The company's iron ore business increased its sales 65.3% YoY to 3.21 million tonnes in the third quarter but absorbed a 17.3% drop in prices to USD 48.91 per tonne. In steel, CAP's Q3 sales from its Huachipato mill fell 10.3% to 276,747 tonnes while prices dropped 52.3% to USD 642 per tonne.
