ALBA SE: Restructuring shows first successes

While the company’s earnings in the steel and metals recycling segment increased noticeable despite the fall in sales revenues, the sustained loss provisions in the dual system had a negative impact on earnings in the services segment.

In the first quarter of 2014 ALBA SE achieved consolidated sales revenues of EUR 372.8 million (previous year: EUR 446.5 million). The decline in the sales revenues is largely due to the lower prices of scrap and the lower tonnages in comparison with the same period last year and the portfolio optimisation that took place in 2013. As at March 31, the earnings before interest, tax, depreciations and amortisations (EBITDA) totalled EUR 7.8 million (previous year: EUR 14.4 million), and the earnings before taxes (EBT) totalled EUR 2.1 million as at the balance sheet date, after EUR 7.8 million in the first quarter of 2013.

The falls in EBITDA and EBT that the ALBA SE Group recorded were caused by the services segment. The uncertainties in the dual system and the associated sustained loss provisions meant that there were fewer special effects due to business in the first quarter of 2014 than there were during the same period in the previous year.

For the steel and metals recycling segment, the management team is expecting to see a further improvement in the situation over the course of the year: in the second half of 2014, a gentle upswing in growth is expected, with positive results for the steel industry. The management team expects to achieve the goals that have been set for 2014.

The management team is also expecting to achieve the planned sales revenues and earnings figures for the current financial year in the services segment. This development depends, however, to a great extent on the future configuration of the dual systems. The focus of the segment will continue to be on the further development of new areas of business and new markets, strengthened cross-selling and the continued internationalisation.


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