Earnings Release • Apr 26, 2012
Earnings Release
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Paris, April 26th, 2012
1st quarter 2012 turnover
| Turnover (€ millions) |
Q1 2011 | Q4 2011 | Q1 2012 |
|---|---|---|---|
| ERAMET Manganese | 467 | 393 | 374* |
| ERAMET Nickel | 271 | 248 | 236 |
| ERAMET Alloys | 237 | 241 | 271 |
| Holding & eliminations | (2) | (2) | (4) |
| ERAMET Group | 973 | 880 | 877* |
Global production of carbon steel rose 1.1% in the 1st quarter of 2012 compared with the 1st quarter of 2011, with an improvement in March (+1.8% compared with March 2011). Chinese production increased 2.5% and steel production outside China was virtually the same as in the 1st quarter of 2011.
CIF China spot prices (source: CRU) for manganese ore were 25% lower in the 1st quarter of 2012 compared with the same period in 2011.
Spot prices (source: CRU) for manganese alloys decreased 13% in the 1st quarter of 2012 compared with the 1st quarter of 2011, but began to recover compared with the 4th quarter of 2011.
In the 1st quarter of 2012, ERAMET Manganese's production of manganese ore and sinter (approximately 450,000 tons) was heavily penalised compared with the1st quarter of 2011 by a non-recurrent technical problem, since solved, that blocked wagon unloading
* After the €24 million effect of the 50% deconsolidation of the Norwegian titanium dioxide activity, effective as of October 1st, 2011, following its contribution by ERAMET to TiZir, the 50/50 joint venture created with the Australian company Mineral Deposits Limited, to develop the Grande Côte mineral sands deposit (ilmenite & zirconium) in Senegal.
at Owendo port for six weeks. As a result, the Division's external shipments of manganese ore and sinter were 25% lower in the 1st quarter of 2012 than in the 1st quarter of 2011.
ERAMET has limited its production of manganese alloys in order to adapt to market conditions.
Global production of stainless steel decreased by approximately 3% in the 1st quarter of 2012 compared with the 1st quarter of 2011.
In the 1st quarter of 2012, LME inventories fell by approximately 23,000 tons compared with the 1st quarter of 2011, to approximately 100,000 tons. LME nickel prices in the 1st quarter 2012 were 27% lower than in the 1st quarter of 2011. Nevertheless, they rose 8% in the 1st quarter of 2012 compared with the 4th quarter 2011 to average 8.92 USD/pound.
In the 1st quarter of 2012, metallurgical nickel production at the Doniambo plant in New Caledonia (14,200 tons) rose 9% compared with the 1st quarter 2011. Moreover, nickel deliveries also rose 8% compared with the 1st quarter of 2011 to 13,600 tons.
ERAMET Alloys' turnover increased 14% in the 1st quarter of 2012 compared with the 1st quarter of 2011.
It particularly grew in the aerospace and power sectors.
The ERAMET group's financial situation remains very sound.
The decrease in manganese ore inventory in Chinese ports, which began in mid-2011, is continuing and a slight rise in manganese ore prices is expected in May, while the increase in manganese alloy prices should continue.
ERAMET's production of manganese ore and sinter is expected to rise in the 2nd quarter of 2012 compared with the 1st quarter of 2012. ERAMET Manganese's turnover is expected to be significantly higher in the 2nd quarter than in the 1st quarter of 2012.
The new manganese alloy plant in Guilin, China will come on stream in the 3rd quarter of 2012. This facility will position ERAMET Manganese on the fast-growing Chinese market for refined manganese alloys.
LME nickel prices remained around 8 USD/pound in April 2012.
ERAMET Nickel's production of nickel should be higher in the 2nd quarter than in the 1st quarter of 2012, unless exceptional factors arise.
The outlook for the 1st half of 2012 is healthy on ERAMET Alloys' various markets, particularly aerospace.
As previously announced, average nickel and manganese prices since the beginning of the year have remained at lower levels than the average for 2011.
In the 1st half of 2012, the ERAMET group's current operating income will be lower than in the 1st half of 2011.
ERAMET's general shareholders' meeting will take place at 10:30 am on May 15th, 2012 at Les Salons Hoche – 9, Avenue Hoche – 75008 Paris.
ERAMET is a leading global producer of:
ERAMET is also studying or developing major projects in new activities such as mineral sands (titanium dioxide and zirconium), lithium, niobium and rare earths, as well as in recycling.
The Group employs approximately 15,000 people in 20 countries. ERAMET is part of Euronext Paris Compartment A.
Vice President Strategy and Investor Relations Philippe Joly Tel.: +33 (0)1 4538 4202
Investor Relations David Fortin Tel.: +33 (0)1 4538 4286
| Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 |
|---|---|---|---|---|
| 467 | 455 | 398 | 393 | 374* |
| 271 | 270 | 200 | 248 | 236 |
| 237 | 236 | 196 | 241 | 271 |
| (2) | (3) | (2) | (2) | (4) |
| 973 | 958 | 792 | 880 | 877* |
* See footnote page 1
| (Metric tons) | Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 |
|---|---|---|---|---|---|
| Manganese ore and sinter production | 797 400 | 884 000 | 956 900 | 795 200 | 449 300 |
| Manganese alloy production | 212 000 | 203 000 | 197 900 | 172 800 | 176 000 |
| Manganese alloy sales | 206 000 | 205 000 | 199 100 | 184 600 | 194 500 |
| Nickel production* | 12 995 | 12 813 | 13 947 | 14 604 | 14 220 |
| Nickel sales** | 12 591 | 13 822 | 11 315 | 15 551 | 13 602 |
* Ferronickel and matte
** Finished products
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