Swedish-based iron ore producer LKAB has issued its financial results for the full year of 2015.
In 2015, the company registered a net loss of SEK 5.68 billion ($670.6 million), compared to a net profit of SEK 347 million in the previous year. Sales revenues in the given year decreased by 4.4 percent year on year to SEK 16.2 billion ($1.91 billion), while the company recorded an operating loss of SEK 7.15 billion ($844 million) compared to an operating profit of SEK 570 million in 2014.
In 2015, company’s iron ore output amounted to 24.5 million mt, decreasing by 1.2 percent year on year. In the same year, the company's shipments decreased by 1.8 percent to 24.2 million mt compared to 2014.
LKAB stated that it expects the market situation to remain largely unchanged in 2016; in other words, that the oversupply situation in iron ore fines will remain, putting pressure on iron prices and thus also on LKAB’s profitability. With iron ore prices expected to remain low, LKAB is intensifying its adaptation work, focusing on productivity improvements and cost cutting in order to improve competitiveness. By the end of the year the previously announced savings target of SEK 700 million for 2015 had been achieved. Total savings amounted to SEK 800 million for 2015. Personnel reductions equivalent to 400 positions are continuing according to plan and will be completed during the first quarter of 2016.