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1.4-30.06 |
1.1-30.06 |
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| Amounts in NOK million |
2009 |
2008 |
2009 |
2008 |
2008 |
| Operating revenues |
1 883 |
2 195 |
3 721 |
4 260 |
8 939 |
| EBITA* |
-109 |
167 |
7 |
347 |
942 |
| EBITA-margin* |
-5,8% |
7,6% |
0,2% |
8,1% |
10,5% |
| *Before amortisation, restructuring and significant impairments |
| Elkem's first-half operating revenues totalled NOK 3,721 million (NOK 4,260 million)1. First-half EBITA was NOK 7 million compared with NOK 347 million in the same period of 2008. The silicon-related units, excluding Elkem Solar, experienced weak markets, resulting in negative profit of NOK -6 million in the period. EBITA at Elkem Solar was NOK -322 million in the first half-year, of which depreciation accounted for NOK -127 million. |
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www.elkem.com |
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Elkem is one of the world leaders in the environment-friendly manufacture of metals and materials.
Its main products are energy, silicon, special ferrosilicon alloys for the foundry industry, carbon and microsilica. Elkem also invests heavily in the solar industry.
The company has production facilities in Europe, North and South America, Africa and Asia, and an extensive network of sales offices in its main markets. | |
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The volume of silicon and ferrosilicon taken out by customers in the steel industry, the aluminium industry and the chemical market was low in the first
half-year. Activity levels were further reduced from the first quarter to the second quarter, resulting in capacity closures at most of Elkem's plants in Norway. The carbon business also saw weak demand and operated at just under 50 % capacity in the first
half-year. Microsilica sales to the construction industry and the steel industry were weak in the first
half-year. Activity levels are adapted to the market trend on a continuous basis, and at the end of the second quarter the
silicon-related units, excluding than Elkem Solar, were operating at about 50 % capacity overall.
Elkem Energy delivered significantly better profit than in the first half of 2008, mainly due to a positive EBITA from trading compared with the loss recorded in the same period last year. Trading EBITA was positive at NOK 48 million. The merger of Elkem Fornybar Energi and Norsk Grønnkraft AS brought an accounting gain of NOK 54 million in the first quarter. Production in the
half-year was 1,242 GWh compared with 1,380 GWh in the same period last year. The decline was due to a planned production increase in last year's fourth quarter prompted by price expectations, as well as lower reservoir inflow and lower snow storage levels in the period. The low production volume was offset by higher realised prices.
Elkem has implemented a
wide-ranging cost improvement programme at Head Office and other support functions. Staff cuts total 135
man-years overall. A charge of NOK 25 million in this connection has been expensed in the second quarter financial statements. The staff cuts entail a reduction of NOK 180 million in the cost base which will have effect from 2010 onwards. In the first half of 2008 Elkem saw a positive
one-off effect of NOK 15 million related to the sale of the calcium carbide plant at Pryor in the US.
After
quarter-end a fire broke out at one of Elkem Solar's processing plants. While there were no personal injuries or serious damage to equipment, full repairs are expected to take
2-3 months. The
ramp-up plan will be subject to a delay of the same duration, and delivered volume in 2009 will be lower than previously estimated.
1 Figures in parentheses are for the corresponding period in the previous year.
2 Excluding aquisitions, divestments and currency translation effects.