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ISCOR LIMITED - UNAUDITED GROUP EARNINGS AND PHYSICAL INFORMATION FOR THE
QUARTER ENDED 31 MARCH 2004
ISCOR LIMITED
Registration no: 1989/002164/06
JSE Share code: ISC
ISIN code: ZAE 000037453
UNAUDITED GROUP EARNINGS AND PHYSICAL INFORMATION FOR THE QUARTER ENDED
31 MARCH 2004
GROUP INCOME STATEMENT (Rm)
Six
Quarter months
ended ended
31 March 31 December
2004 2003 2003
Revenue 4 869 4 629 9 175
Flat Steel Products
* Vanderbijlpark 2 613 2 519 5 026
* Saldanha Steel 755 791 1 364
Long Steel Products 1 347 1 209 2 496
Coke & Chemicals 219 200 409
Other 30 19 37
Inter Group (95) (109) (157)
Operating profit 1 003 994 725
Flat Steel Products
* Vanderbijlpark 610 601 979
* Saldanha Steel 137 167 107
Long Steel Products 214 224 348
Coke & Chemicals 53 33 103
Other 10 (7) 28
Corporate (21) (24) (61)
BAA remuneration (613)
Restructuring costs (166)
Net financing costs (32) (42) (69)
Profit from equity accounted investments
before tax 60 22 88
Surplus on sale of residential properties 14 12
Goodwill amortised (5) (11)
Taxation (358) (318) (279)
Minority interest (4) (3)
Profit attributable to ordinary
shareholders 664 670 463
ADDITIONAL INFORMATION
Profit attributable to ordinary
shareholders 664 670 463
Adjusted for
* Surplus on sale of residential
properties (14) (12)
* Goodwill amortised 5 11
Headline earnings 669 656 462
Comparable headline earnings US$m
(average spot) 99 79 143
Performance per ordinary share
Headline earnings per share (cents) 150 147 104
Attributable earnings per share (cents) 149 150 104
PHYSICAL INFORMATION ("000 tonnes)
Six
Quarter months
ended ended
31 March 31 December
2004 2003 2003
Flat Steel Products
- Vanderbijlpark
Liquid steel production 834 903 1 870
Sales 795 776 1 664
* Local - DSP 93 80 150
- Other 425 413 792
* Export 277 283 722
* Local sales as % of total sales 65 64 57
- Saldanha Steel
Liquid steel production 328 301 645
Sales 299 297 622
* Local - DSP 48 64 114
- Other 27 31 70
* Export 224 202 438
* Local sales as % of total sales 25 32 30
Long Steel Products
Liquid steel production 528 539 1 080
Sales 496 432 939
* Local 275 222 496
* Export 221 210 443
* Local sales as % of total sales 55 51 53
Total
Liquid steel production 1 690 1 743 3 595
Sales 1 590 1 505 3 225
* Local - DSP 141 144 264
- Other 727 666 1 358
* Export 722 695 1 603
* Local sales as % of total sales
- Including DSP 55 54 50
- Excluding DSP 46 44 42
FINANCIAL RESULTS
Headline earnings for the quarter were marginally above those of the same
quarter last year. The improvement in global steel prices offset the negative
impact of the stronger currency, which averaged R6,75/US$ vs R8,32/US$ for the
corresponding period.
Expressed in US Dollar terms headline earnings improved by 25%. Cash flow was
strong with the closing net cash position improving during the quarter by R478
million to R505 million.
MARKET REVIEW
International
Average prices realised for both flat and long steel exports for the quarter
were higher than the same period last year: for hot rolled coil by 19% and low
carbon wire rod by 22%. The current order book shows a significant further
increase over the past quarter"s invoiced prices.
The price strength is being driven by ongoing strong Chinese demand, supported
by the recent recovery in demand in the USA and Japan, which has precipitated a
shortage of raw materials and shipping capacity, pushing input costs up sharply
and placing constraints on steel making capacity.
Domestic
Domestic sales, excluding deliveries to Duferco Steel Processing (DSP),
increased by 9% compared to the same quarter last year and by 10% compared to
the fourth quarter of 2003.
Domestic sales growth was due to a combination of pre-emptive buying ahead of
price increases and underlying steel consumption growth. Underlying consumption
is expected to improve further during the remainder of 2004.
COST REDUCTION DRIVE
Our shared services restructuring programme is well on track and the full
benefit of the expected R200 million annual savings should become effective from
the third quarter of 2004. The labour cost reduction drive at the steel
operations, involving further planned annual savings of R120 million, is
currently being negotiated with the trade unions.
Despite the significant input price escalation during the past year, cost per
tonne of steel for the quarter remained at the same level as the first quarter
of 2003. Expressed in US Dollar terms, however, cost per tonne increased by 24%
as a result of the stronger exchange rate.
PRODUCTION
Output at the Vanderbijlpark works was affected by the scheduled throat armour
repair of blast furnace C, resulting in an 18 day outage and loss of 61 000
tonnes of hot metal production. The furnace is now back to normal production.
OUTLOOK
The higher level of prices will have a positive impact on second quarter
earnings, although the full impact will be tempered by any strengthening of the
exchange rate.
Registered Office:
Iscor Corporate Office
Roger Dyason Road
Pretoria West
0002
Transfer Secretaries:
Computershare Limited
70 Marshall Street
Johannesburg
PO Box 61051,
Marshalltown, 2107
Directors:
K Ngqula (Chairman), LL van Niekerk (Chief Executive Officer), DK Chugh*,
RG Cottrell, M Macdonald, S Maheshwari*, CE Markus, A Mittal*, LN Mittal*,
Dr KDK Mokhele, MJN Njeke, Dr MJUT van Wijngaarden
*Citizen of India.
Company Secretary:
A van der Merwe
This report is available at Iscor"s World Wide Web site at:
http://www.iscor.com
Share Queries:
Please call the Iscor ShareCare Line toll free on 0800 006 960 or
+27 11 775 3420 if calling from outside South Africa.
Date: 22/04/2004 02:00:15 PM Produced by the JSE SENS Department
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