On February 16, Swedish producer of upgraded iron ore products Luossavaara-Kiirunavaara AB (LKAB) announced its financial, production and delivery results for the fourth quarter of 2009 (Q4 2009) and the whole year.
LKAB posted a net income of SEK 705 million ($97.4 million) in Q4 2009, dropping six percent compared with a profit of SEK 751 million in the same period of 2008. When the same periods are compared, the company's sales revenues fell 17 percent from SEK 5.5 billion to SEK 4.6 billion ($636 million).
Production of iron ore products within the company's mining division amounted to 6.5 million mt in Q4 2009, marking a 10 percent increase compared to 5.9 million mt in the same period of 2008. Total deliveries amounted to 7 million mt in Q4 2009, up 35 percent on deliveries of 5.2 million mt in Q4 2008.
The company posted a net profit of SEK 719 million ($99.3 million) in 2009, dropping 91 percent compared with a net profit of SEK 7.6 billion in 2008. When the same periods are compared, the company's sales revenues fell 50 percent from SEK 23.1 billion to SEK 11.6 billion ($1.62 billion).
Production of iron ore products within the mining division amounted to 17.7 million mt in 2009, 26 percent lower compared to 23.8 million mt in 2008. Total deliveries amounted to 18.7 million mt in 2009, down 18 percent on deliveries of 22.7 million mt in 2008.
LKAB said that it has seen a dramatic increase in order intake during the second half of 2009, adding that several new business agreements have been reached with, among others, Chinese customers during the whole year. The company also said that it was planning for full production in all iron ore facilities during 2010 as the stocks of finished products are now very low.