Ispat Boasts Strong Q4

Steel producer Ispat International NV said on Wednesday a strong fourth quarter helped to lift 1997 profits and said a $600 million capital expenditure programme was proceeding smoothly. The company, which went public in August 1997, is listed in New York and Amsterdam and has steel-making facilities in Mexico, Trinidad, Canada, Germany and Ireland. It earlier announced a rise in 1997 adjusted net income to $186 million from $160 million a year earlier. The adjusted figure excludes amortisation of negative goodwill, the net gain or loss from foreign exchange and deferred assets written off. Reuters

Net sales increased 18 percent to $2.19 billion and earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 21 percent to $406 million. Steel shipments for the year rose 22 percent to 7.2 million tonnes.

 

It said fourth quarter net sales rose 26 percent from the previous quarter to $671 million and EBITDA climbed 29 percent over the same period to $134 million.

The company said it had reached agreement on 430 job cuts with workers representatives at two German plants.

Ispat said it had agreed with the Workers Council of Ispat Germany (Ruhrort) to cut the headcount to 900 from 1,250 by the first quarter of 1999. It has also negotiated a headcount reduction to 360 from 440 at its Hochfeld site.

Ispat said a significant portion of its $600 million capital expenditure programme was successfully completed in 1997.

The construction of a new direct reduced iron (DRI) facility at its CIL unit and projects at Ispat Germany should be completed by the end of 1998, it added.

A $175 million upgrade at its Imexsa plant in Mexico would be completed by the fourth quarter of 1999, it said.

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