Business
Trading Update and Q4 2008 Pr
Trading Update and Q4 2008 Pr.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n RNS Number : 6720M Ferrexpo PLC 03 February 2009 \n \n3 February 2009\n\n\nTrading Update and Q4 2008 Production Report \n\nFerrexpo plc ('Ferrexpo' or the 'Group') today issues a trading update following the Group's trading statement released on 29 October 2008, together with its Production Report for the fourth quarter of 2008.\n\nHighlights\n\n\n\n2008 - a record year\n\n\nOperating financial performance ahead of management expectations\n\n\nSales in spot market compensated weakness in traditional markets in November and December\n\n\nDecember C1 cash costs significantly reduced to US$34.7/t, benefitting from weaker local currency and lower grinding media and fuel costs\n\n\nProduction in line with expectations reflecting Q4 planned reductions\n\n\nRecord output of high quality 65% Fe pellets for the year\n\n\nFull year 2008 trading\n\n2008 was a record year and ended well giving a full year operating financial performance ahead of management expectations, benefiting from a sharp reduction in costs in December as a result of a weaker local currency, continued falling oil prices and lower costs for grinding media. \n\nIn response to a sharp reduction in demand in October, the Group made modest planned reductions in output which has resulted in full year production at 2007 levels. It was however able to sell substantially all of its 2008 production, leveraging on its strong international customer relationships to access the spot market. This partly compensated for much lower volumes in its traditional export and home markets. \n\nYear end net debt was US$220 million. The Group is operating comfortably within its existing facilities.\n\nSales\n\nAs previously announced, in October several of our long term export customers notified the Group of their inability to accept deliveries of all contracted tonnage in 2008, following a rapid decline in steel demand. This followed the suspension of all iron ore pellet purchases by our major Ukrainian long term contract cus...