Italian steel producer Feralpi Group has announced its 2011 financial and operational results.
On the output side, in 2011 Feralpi Group produced 2.09 million mt of steel billets, up 21.7 percent, 1.83 million mt of long steel products, up 18.8 percent, and 610,000 mt of cold drawn products, up six percent, all year on year.
On its balance sheet, Feralpi Group's consolidated sales revenue increased by 36.5 percent compared to 2010 to €1.118 billion. The company's sales revenues grew mainly in its foreign markets, up 58 percent year on year, bringing the share of sales revenues from the foreign markets up to 56 percent, while the share for revenues from the Italian market dipped from 51 percent in 2010 to 44 percent. The company stated it performed particularly well in the northern European and North African markets.
EBITDA increased by 77.74 percent year on year to almost $59 million, while net profit amounted to €9.588 million compared to a loss of €2.55 million in 2010.
Giuseppe Pasini, Feralpi Group's chairman, commented, "Although the Italian market is contracting, we gained extremely positive results due to export activity. Now more than ever we must reinforce our market position through know-how and increased product quality gained by investing in process and product innovation". On the investment side, Feralpi highlights the €62.4 million spent in 2011, which is about €20 million more than in 2010.
Feralpi's 2012 outlook is oriented towards caution. In particular, the company states it is worried about the 4.4 percent year-on-year crude steel output decrease in the EU in the first five month this year. In the same period, Italy's crude steel output still increased by 2.3 percent, but since April monthly Italian production has started to decrease on year-on-year basis. Feralpi believes that in 2012 its business will see a relatively good performance in northern Europe and in North Africa, but in Italy construction activity will remain slack.