The board of directors of Eramet, meeting on July 28th 2010 under the chairmanship of Mr Patrick Buffet, prepared the financial statements for the first half of 2010.
Item H1 09 H1 10 Change
Turnover
Eramet Manganese 565 932 65%
Eramet Nickel 310 483 56%
Eramet Alloys 420 378 -10%
Holding company & eliminations -3 -5 NS
Eramet Group 1,292 1,788 38%
Current operating income (loss) -223 341 NS
Net income (loss), Group share -213 175 NS
Earnings per share (�) -8.23 6.65 NS
Net cash 926 1,062 NS
In EUR millions
Global economic activity improved significantly in the first half of 2010 compared with the same period in 2009, which was depressed by the global crisis. However, the gap widened between emerging countries, whose economies regained or exceeded their pre crisis levels, and developed economies, where activity did not return to pre crisis levels despite a marked upturn.
This situation was reflected in rising demand and prices for Eramet Manganese and Eramet Nickel. Eramet Alloys' turnover, however, was lower than in the first six months of 2009, particularly in aerospace and energy sectors, while tooling remained at the same very low levels as in first half 2009.
Overall, the Eramet Group's turnover grew 38% in the first half of 2010 compared with the same period in 2009 and was up 59% in the 2nd quarter of 2010 from the second quarter of 2009. Current operating income totaled EUR 341 million for the first half of 2010, which represents 19% of turnover, compared with a current operating loss of EUR 223 million in the first half of 2009.
The Eramet Group paid out EUR 74 million in dividends, of which EUR 47 million to its shareholders and EUR 27 million to minority shareholders, chiefly of Société Le Nickel in New Caledonia and COMILOG in Gabon. The Group's dividend was mainly paid out as Eramet shares, leading to an approximately EUR 30 million increase in shareholders' equity.
1. Eramet Manganese
Thanks to the substantial rise in manganese ore and alloys sales volumes and prices, Eramet Manganese's turnover, at EUR 932 million, rose 65% in the first half of 2010 compared with the same period in 2009.
Current operating income amounted to EUR 265 million as compared with a current operating loss of EUR 94 million in the first half of 2009. Global production of carbon steels, the main market for manganese, grew 29% in the first half of 2010 compared with the first half of 2009. China grew 22% and the rest of the world 36%. Manganese demand was also heightened by substantial inventory movements in China.
Shipments of manganese alloys by Eramet Manganese's rose 28% in the first half of 2010 compared with the same period in 2009. External shipments of manganese ore and sinter grew 81% over the same period. Production of manganese ore and sinter totaled 1,573,000 tonnes, a sharp increase from the limited levels recorded in the first half of 2009.
2. Eramet Nickel
Thanks to the sharp rise in prices, Eramet Nickel's turnover rose by 56% in the first half of 2010 compared with the same period in 2009 to total EUR 483 million.
Current operating income amounted to EUR 94 million as compared with a current operating loss of EUR 89 million in the first half of 2009. Global production of stainless steel, the main outlet for nickel, grew 40% in the first half of 2010 compared with the first half of 2009. Output rose 28% in China and 48% in the rest of the world.
3. Eramet Alloys
Eramet Alloys' turnover totaled EUR 378 million in the first half of 2010, down by 10% compared with the first half of 2009. The aerospace and power generation sectors, in particular, continued their significant decline, while the tooling sector remained on a par with the first half of 2009, which was itself far below first half 2008 levels.
Current operating income totaled EUR 5 million as compared with a current operating loss of EUR 26 million in the first half of 2009. New orders began to recover towards the end of the first half but were still below pre crisis levels.
