LKAB REDUCES LOSSES 2 kV but REDUCTIONS CONTINUE – Dagens Industri

LKAB REDUCES LOSSES 2 kV but REDUCTIONS CONTINUE

                  2015-08-14 13:22
             

 STOCKHOLM (AFX) State mining giant LKAB reported on Friday a reduced loss for the second quarter, compared to the same period last year.
  The market is still difficult and the Company expects continued cost reductions and personnel cutbacks.
  "Low iron ore prices and lower deliveries presses LKAB's profitability. At the same time work to reduce costs positive effect," the company said in the interim report.
  Operating profit for the second quarter to SEK 228 million, an improvement compared to the -417 million the company reported for the same quarter last year.
  Excluding provisions for social transformation in Kiruna, operating profit was SEK 23 million (859). Sales landed at SEK 3.6 billion (5.0).
  Production during the quarter was 5.8 million tonnes, slightly lower than in the 2014 second quarter. The company explains the decline of "problems with raw material supply from underground mines".
  Deliveries fell more, to 5.3 million  tonnes from 6.0 million in 2014, against the background of an extended maintenance shutdown at the port of Narvik.
  Someone nearby turnaround for the tough situation with a low world price of iron ore track the company does not.
  "The global iron ore market is characterized by continued excess capacity of järnmalmsfines, the market situation is expected to persist for a long time," comments CEO Lars-Eric Aaro.
  LKAB meet the challenges through continued cost saving measures. Negotiations on personnel reductions corresponding to 400 posts will be implemented in the autumn.
  Jan Moström from Boliden's mining director, has, as previously communicated, been appointed new CEO of LKAB. He will take up his post on 15 August, a month earlier than previously announced. 

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