Ferrexpo Plc, the producer of iron ore in Ukraine, said first-half profit slumped 80 percent after demand for the steelmaking ingredient weakened.
Net income slipped to $28.5 million, or 4.87 cents a share, from $141.4 million, or 23.14 cents, a year earlier, Baar, Switzerland-based Ferrexpo said in a statement today. Sales declined 42 percent to $301.8 million. The declaration of its interim dividend will be deferred until October.
Trading reached a “low point” in the first half, Ferrexpo said in the statement. “We should be trading more profitably in the second half.”
There are signs of “normalization” in the iron-ore trade and strengthening regional consumption, while Chinese demand remains “robust,” the company said. Iron ore for immediate delivery to China, the biggest buyer, climbed to the highest in nine months last week, trading above the annual benchmark price agreed between Rio Tinto Group and mills in Japan, South Korea and Taiwan.
Source: Bloomberg
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