May 19, 2010 - S&B Industrial Minerals SA more than doubled its operating profit in Q1 2010 driven by recovery in metallurgical end markets, the Greece-based company said.
Operating profit rose to 7.3m. ($9m.) from 3.3m. in the same period last year, while sales increased 19.7% to 95.2m.
S&B's largest business, bentonite, reported a 72% increase in profit (EBITDA) to 8.1m. as foundry and iron ore pelletising end markets recovered from a weak performance in 2009. However, civil engineering sales were inactive, especially in Europe, due to a lack of new infrastructure projects, the company said.
The bauxite business plummeted to a 133,000 EBITDA loss from a 1.48m. profit in Q1 2009, despite an increase in sales. The segment was hit by a temporary suspension in mining activity ordered by the Council of State and delays in permitting procedure.
Meanwhile, the continuous casting fluxes business reported a four-fold increase in EDBITDA, in line with the recovery of global steel production.
"We believe that the strength of the recovery is still fragile in the absence of employment growth in the world economies and sovereign debt risks in the eurozone countries,"said S&B's CEO Efthimios Vidalis.
"Despite our mid-single digit revenue exposure to the Greek market and our cautious optimism for international top line growth, cost control and cash flow management will continue to remain in our focus," he added.
Please click to view: "First Quarter 2010 Financial Results".
Operating profit rose to 7.3m. ($9m.) from 3.3m. in the same period last year, while sales increased 19.7% to 95.2m.
S&B's largest business, bentonite, reported a 72% increase in profit (EBITDA) to 8.1m. as foundry and iron ore pelletising end markets recovered from a weak performance in 2009. However, civil engineering sales were inactive, especially in Europe, due to a lack of new infrastructure projects, the company said.
The bauxite business plummeted to a 133,000 EBITDA loss from a 1.48m. profit in Q1 2009, despite an increase in sales. The segment was hit by a temporary suspension in mining activity ordered by the Council of State and delays in permitting procedure.
Meanwhile, the continuous casting fluxes business reported a four-fold increase in EDBITDA, in line with the recovery of global steel production.
"We believe that the strength of the recovery is still fragile in the absence of employment growth in the world economies and sovereign debt risks in the eurozone countries,"said S&B's CEO Efthimios Vidalis.
"Despite our mid-single digit revenue exposure to the Greek market and our cautious optimism for international top line growth, cost control and cash flow management will continue to remain in our focus," he added.
Please click to view: "First Quarter 2010 Financial Results".
