Iscor reports weaker results for the second half

Iscor reports weaker results for the second half

With a statement released by South African steel producer Iscor, the company posted fiscal results of second half ended on December 31, 2004. Accordingly, the earnings of the company decreased by 65% to ZAR462 million ($68 million) in the six-month period. The company recorded its earnings as ZAR1.3 billion ($199 million) in the same period of previous year. The decrease in profit is attributed to domestic demand, which decreased by 19% and Rand, which increased by 42%, together with the payment of ZAR613 million ($91 million) to LNM under the scope of cost-saving contract and restructuring cost of ZAR166 million ($24.7 million). SteelOrbis previously reported that Iscor was expecting a decrease of 30% in its half year profit. If the above cited costs are excluded, the decrease in the profit would be 25%, stated an official from Iscor. The official also added that they expect improved results for the coming six-month period, as they believe that domestic demand will increase and the company has many long-term agreements, moreover 84% of the scrap the company uses is supplied locally.