|
SALDANHA STEEL (PTY) LIMITED
Registration number 1995/000628/07
UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
- Sales volumes increased by 43 3%
- Premium quality products produced
- Gauges of 2mm and below account for more than 60% of production
- Increased sales despite drop in market
COMMENTS
MARKETING
Saldanha Steel increased its sales for the period under review despite the
difficult international market. The increase in sales is largely due the
company's ability to produce quality ultra thin gauge hot rolled coil.
In keeping with targets, more than 60 percent of production accounted for
gauges of 2mm and below.
Due to the rapid increase in production world-wide and overstocking by buyers,
hot rolled coil prices (which had peaked in the fourth quarter of the last
financial year) were in steep decline throughout the first half of the
financial year. Prices decreased by as much as 40% a metric ton.
Saldanha Steel has already established a significant and geographically
balanced repeat order business despite anti-competitive actions, especially in
the USA, which exacerbated the impact of the unfavourable market conditions.
RESULTS
Sales volumes increased by 43% to 399 000 tons during the first half of the
year at an average, ex-works price of R1 583 per ton. Lower than envisaged
prices and unexpected high production costs (which were mainly linked to the
difficulties in the ramp up of the iron making units) restrained the planned
improvement in the operating results.
The net cash outflow was lower than that of the corresponding period in the
previous financial year, due to lower cash outflows from operations and a sharp
reduction in capital expenditure.
The net loss attributable to shareholders amounted to R505 million.
The interim financial statements are prepared in accordance with South African
Generally Accepted Accounting Principles and the accounting principles used are
consistent with those applied at the previous year end.
OPERATIONS
Excellent results have been achieved with the production of thin gauge
material. A good balance between the thin gauges and other products has been
achieved.
The mix of technical problems experienced since start-up has changed and shows
significant improvement.
Over the past six months the Conarc furnace which had previously been the
bottleneck, has performed well. The capacity testing for the Midrex was
concluded successfully in January. Until such time as the problem with the
Corex refractories has been resolved with the cooperation of the supplier,
temporary repairs will have to be done every six months which will continue to
inhibit the production rate.
OUTLOOK
Steel prices are expected to start improving in the last quarter of the
financial year. Given the two to three month lead time in orders, the impact on
results will only be felt in the next financial year. The shareholders are in
the process of addressing the refinancing of Saldanha Steel. Results for the
second half of the financial year are expected to be much in line with the
first half.
RG Cottrell MS Mulder
Chairman Managing Director and
Chief Executive Officer
22 February 2001
SALDANHA STEEL (PTY) LTD
Private Bag X11 Saldanha 7395 South Africa
Tel (022) 709-4000 Fax (022) 709-4200
Directors: RSE Alberts (alt), FS Clarke, WF Coertzen (alt), RG Cottrell
(chairman), CAP Galego, JB Greyling (alt), MS Mulder (managing director), MG
Qhena, AJ Reve, LL van Niekerk, DJ van Staden, G-F von Brandis (alt)
Secretary: T Tromp
INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
31 December 30 June
2000 1999 2000
Rm Rm Rm
Revenue 786 411 1 014
Net operating loss 297 400 615
Net financing costs 418 453 915
Loss before taxation (Note 1) 715 853 1 530
Taxation (210) (390) (585)
Net loss attributable
to shareholders 505 463 945
CASH FLOW
Cash outflow from operations 150 238 374
Financing costs 357 334 816
Increase in working capital 160 39 100
Capital expenditure 38 152 215
Sale of tax credits (297) (330) (330)
Net cash outflow 408 433 1 175
NOTES
1. Loss before taxation is arrived
at after depreciation. 126 115 230
BALANCE SHEET
31 December June
2000 1999 2000
Rm Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 8 631 8 770 8 720
Other financial assets 38 41 39
8 669 8 811 8 759
Current Assets
Cash and cash equivalents 41 56 36
Inventory 380 249 355
Other 648 299 456
Total assets 9 738 9 415 9 606
EQUITY AND LIABILITIES
Shareholders' funds 2 073 1 910 1 462
Deferred tax credits 874 1 006 959
Non-current liabilities
Interest-bearing borrowings 4 945 4 670 5 401
7 892 7 586 7 822
Current liabilities
Interest-bearing borrowings 1 468 1 233 1 435
Other 378 596 349
Total equity and liabilities 9 738 9 415 9 606
SUPPLEMENTARY PHYSICAL INFORMATION
'000 tons '000 tons '000 tons
Production of hot rolled coils 425 322 691
Sales of hot rolled coils 399 279 576
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
