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LONDON (Alliance News) - Ferroalloys company Afarak Group PLC Friday said its net loss narrowed in the fourth quarter of 2013, although its operating loss widened as lower sales prices and higher raw material costs offset strong growth in production and cost cutting.
The company, listed in London and Helsinki, said its fourth-quarter net loss narrowed to EUR0.7 million, from EUR6.2 million a year earlier, as revenues rose to EUR41.8 million, from EUR24.2 million. The pattern was repeated in the whole year as the net loss narrowed to EUR4.4 million, from a EUR16.6 million loss in 2012, while revenues rose to EUR135.5 million, from EUR128.6 million.
It said production rose to 174,702 tonnes in the fourth quarter, from 60,329 tonnes, while production in the full year was up 97.3% to 568,279 tonnes.
However, it swung to a fourth-quarter loss before interest and tax of EUR2.9 million, compared with a EUR0.6 million profit before interest and tax a year earlier.
"Higher trading volumes led revenue in the fourth quarter to improve significantly by 73% compared to the same period last year. Despite this improvement we were not able to achieve better results compared to the fourth quarter of 2012 due to more difficult market conditions that led to lower sales prices, higher raw material costs and extraordinary year-end adjustments." Chief Executive Danko Koncar said in a statement.
It said it expects it 2014 performance to be slightly better than in 2013. It said demand for ferroalloys is expected to increase but it's preparing for price volatility, while it expects raw material costs to rise in its speciality alloys division.
Afarak Group shares last traded at 30 pence in London
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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