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Eramet Reports 2020 Half-Year Results

Mining News - Published on Wed, 05 Aug 2020

Image Source: Eramet
Eramet Chairman and CEO Christel BORIES said “The Covid-19 health crisis has put our industries to the test, profoundly impacting our ecosystems. Above all, it has led to the biggest crisis ever seen in the aerospace sector. Against this background, we have strengthened our cash preservation measures and speeded up the review of our asset portfolio. We still must overcome a highly volatile and uncertain market environment for all sectors of activity. I want to pay tribute to the incredible commitment of our employees who have been responsive and resourceful in ensuring optimal business continuity while stringently complying with health protection protocol. We have pursued our organic growth strategy in mining activities as well as the optimization of our operations in order to bounce back as soon as the global outlook and markets improve.”

Raw material sales prices adversely affected: -22% for manganese ore, -10% for ferronickel.

Brutal and deep impact of aerospace crisis on results for the High-Performance Alloys division, with cash consumption of €156m during the period at Aubert & Duval

Acceleration of portfolio review of least performing assets, all options being considered, including possible Aubert & Duval divestment.

Resilient mining activities, in the context of a crisis of unprecedented scale, with an excellent operating performance, thereby confirming the success of the Group’s organic growth strategy:
- Increase in manganese ore volumes: 2.8 Mt produced, +31% vs. H1 2019
- Increase in nickel ore volumes at SLN: 2.2 Mwmt produced (+12%) and 1.1 Mwmt exported (+120%)
- Successful start-up of four production lines at Weda Bay

Sharp decline in EBITDA to EUR 120 milion owing to the decline in raw material prices and the aerospace crisis at Aubert & Duval, despite intrinsic progress of more than EUR 120 million

Negative net income, Group share of EUR 623 million impacted by a non-recurring expense of EUR 459 million, mainly due to crisis, of which EUR 197 million for Aubert & Duval asset impairment and EUR 142 million related to the mothballing of lithium project

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Posted By : Yogender Pancholi on Wed, 05 Aug 2020
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