Economic and financial results of metal producers in 2009

Economic and financial results metal producers in 2009 were significantly worse than
The 2008 decline in revenue deeper than the costs (by 36% and 30% y / y) caused a negative
financial result. Sold production of metal producers in 2009 decreased (in constant prices)
compared to 2008, over 24%, steel mills cut back production to 7.1 million tonnes (ie 27%
less y / y). The results of the industry have a decisive influence producers of iron, steel and
steel (54% of revenue department) who, despite the implementation of savings schemes
and reduce employment, noted the much larger drop in revenues than costs, which
contributed to the losses [in the case of steel mills ROS = (-8.2%)]. Results of non-ferrous metal production
and foundries (respectively 17% and 15% of the revenue department) were, with the decrease in revenues
and costs, positive, with improved profitability on sales y / y. Poor financial performance department are a drop in demand from the domestic automotive industry and manufacturers of white goods (decrease in consumption
steel by 30% y / y).
In 2009, the producers of metals showed a decrease of profitability [ROS = (-2.2%) compared to 4.7% in 2008;
analogy ROE = (-3.5%) compared with 10.2% and ROA = (-1.9%) compared to 5.3%]. Financial liquidity was too low (CR = 1.3, QR = 0.87). Performance indicators have worsened the action: the longer turnover of stocks (10 days), longer cycle of collection of receivables (12 days) and longer period of settlement of liabilities (25 days). Remission has not changed and tangible assets (0.39), and the investment share in the depreciation, despite the decline (1.86 to 2.4 in 2008) was above the average for manufacturing (investment in metals production accounted for more than 5% total investment in industry). Debt assets (0.47) at the end of 2009 stood at an acceptable level. Coverage ratio of assets
permanent fixed asset (1.02) exceeded the required level of 1.0.
In the medium term remain difficult operating conditions, placing the industry in the area of high risk lending, due to slow demand for rebuilding the domestic and foreign markets. Announcement of stabilizing the situation in the steel industry may be increasing in the first months of 2010, the turnover of the steel industry and run by ArcelorMittal Poland in the first quarter of 2010 of the second blast furnace in Dąbrowa (wygaszonego
in the fourth quarter of 2008), almost half of domestic steel consumption falls on construction and related
of the steel construction industry, which should increase demand for steel, together with infrastructure projects that run sequentially (road and engineering), co-financed by EU and implemented for the EURO 2012. It is expected a growth in demand for steel products from the engineering industry, working with producers such as from Germany. Negative results from the perspective of the industry is the increase in electricity prices, rising prices of iron ore (associated with the change of ordering of iron ore by Asian steel mills - manufacturer of two thirds of world production), which may even double the price of raw material
for the smelters, as well as an increase in scrap prices.