Schmolz+Bickenbach sees net profit in Q3

Swiss-based special steel producer and distributor Schmolz+Bickenbach has announced its financial results for the third quarter and the first nine months of the current year, registering a net profit of €10.6 million, compared to the net loss of €25.6 million in the corresponding quarter of the previous year. The company's sales revenues amounted to €823.5 million, rising five percent year on year, with the sales volume increasing 1.8 percent year on year to 509,000 mt.
 
In the first nine months, Schmolz+Bickenbach posted a net profit of €45.8 million, compared to a net loss of €44.5 million in the corresponding period in 2013. In the given period, the company's sales revenues increased 1.12 percent year on year to €2.55 billion, while the sales volume increased by 5.4 percent year on year to 1.65 million mt.
 
Schmolz+Bickenbach stated that the fact that revenue failed to match the growth rate of its sales volume is mainly attributable to persisting price pressure on base prices, coupled with low alloy surcharges at least in the first two quarters of the current year.
 
Despite the gloomy economic outlook, Schmolz+Bickenbach remains cautiously optimistic for the fiscal year 2014. The 498-kilotonne order backlog achieved in the third quarter of 2014 will ensure good capacity utilization for the company leading into the fourth. It is important to also consider the effect that the customers' ordering behavior towards the end of the year will have on overall results in 2014. The further development of commodity prices, especially for nickel, will also be an influencing factor.