German plate producer Dillinger Group has announced its financial results for 2017, stating that it performed well with its subsidiaries in 2017 in view of persisting difficult conditions on the heavy plate market. Capacity utilization at the plants was very good across all phases of production. Production significantly exceeded that of the previous year and thus reached the highest level of the last five years. Shipments also increased significantly in the given year.
In 2017, Dillinger’s consolidated sales revenues improved significantly by 20.4 percent to €2.122 billion, thanks to an increase in volumes and revenues. The company’s EBITDA in the given year amounted to €210 million, compared to an EBITDA of €31 million recorded in 2016.
In the given year, Dillinger’s crude steel production totaled 2.52 million mt, rising by 11 percent year on year. In the same year, the company’s heavy plate production increased by 8.5 percent to 2.042 million mt, while its heavy plate sales went up by 7.8 percent to 2.047 million mt, both compared to the previous year.
The company stated that it has started 2018 with high utilization of capacities, adding that for the current year as a whole, however, expectations are influenced by the persistently challenging market environment as well as numerous geopolitical uncertainties and are therefore rather subdued. Nevertheless, the Dillinger Group expects capacity utilization to be well above the market average. Continuing problematic framework conditions such as overcapacities and cheap imports make it difficult to raise prices significantly, according to the company.
Subject to possible diversion effects on the European market due to import restrictions in the USA, the company expects sales and earnings figures for this year to be at the same level as last year, with slightly lower production and sales volumes.