Central Europe-based miner New World Resources Plc (NWR) has announced its financial results for the third quarter and the first nine months of 2012.
In the third quarter, the net profit of the company decreased by 62.3 percent to €12.8 million compared to the corresponding quarter of the previous year. NWR's sales revenues decreased by 20.5 percent year on year to €318.7 million, while the company's operating profit declined to €25.4 million, down 65.8 percent year on year.
In January-September this year, NWR registered a net profit of €47.3 million, down 60.9 percent compared to the corresponding period of the previous year. The company's sales revenues decreased by 18 percent to €1.03 billion, mainly due to lower coking coal prices, while its operating profit amounted to €96.9 million, down 58.8 percent, both year on year.
During the first nine months of the current year, total coal output remained unchanged at 8.6 million mt, while external coal sales declined by 10 percent to 7.2 million mt, compared to the corresponding period of the previous year. NWR targets production volumes between 11 million mt and 11.1 million mt and external sales between 10.2 million mt and 10.3 million mt for the financial year 2011-12.
"Market conditions continue to be difficult. Although steel production in central and eastern Europe remains relatively resilient, demand for steel products has deteriorated, particularly in the car industry in western Europe. This has forced some steel mills and foundries in our core markets to continue operating at reduced levels." said Marek Jelinek, executive director and CFO of New World Resources.