PARIS, Sept. 19, 2001 (PRIMEZONE) -- Usinor (Paris Stock Exchange:USI), semi-annual results.
The Board of Directors, on September 18, 2001, under the chairmanship of Francis Mer, reviewed the Group's consolidated results for the first half of 2001.
At June 30, 2001, consolidated net income was 67 million Euros.
In million of euros At June 30, At June 30,
(unaudited) 2000 2001
Net sales 8,110 7,865
Operating Income 719 198
Net Income 490 67
EPS* 2.12 0.29
* In euros. Shares held by Usinor at June 30, 2001 are not taken into
account.
Consolidated net sales for the first half 2001 amounted to 7,865 million Euros compared to 8,110 million for the same period in 2000, or a decrease of 3.5% on a comparable basis.
In million June 30,2000 June 30,2001
of euros
Unaudited Net Operating Net Operating
sales Income % sales Income %
Flat Carbon
Steels 4,592 505 11% 4,550 276 6,1%
Processing and
Distribution 2,364* 119 5% 2,029 52 2,6%
Stainless Steels,
Alloys and
Specialty Plates 1,983 130 6,6% 1,782 -76 -4,3%
Other activities 323 -35 -- 265 -54 --
Intra-group
sales -1,152 -- -- -761 -- --
* Total sales.
Operating profit was 198 million Euros, or 2.5% of net sales, compared to 719 million Euros for the same period in 2000. This erosion of margins in essentially due to a slowdown of apparent consumption at world level combined with sharp increases of raw material prices.
Moreover, voluntary cut back in production, have on one hand allowed a significant decrease in inventories but also clearly contributed to the deterioration of margins.
Net income for the first six months of the year was 67 million Euros (78 million for the first quarter and -11 for the second quarter).
in million of euros December 31, June 30, 2001
2000 unaudited
Total shareholders' equity* 5,687 5,628
Net debt 3,069 3,047
Net debt/equity* 0.54 0.54
*including minority interests
Net cash from operations amounted to 634 million Euros, compared to 63 million during the same period of 2000, this positive evolution resulting from working capital requirements improvements.
At June 30, 2001 net debt at 3,047 million Euros remains close to net debt at December 31, 2000 (3,069 million) due to the payment of the dividend (148 million) and to the rise of the dollar denominated debt.
The net debt/equity ratio therefore stands at 0.54, the objective of 0.50 at year end being maintained.
Prospects
During the first six months of 2001, the Group's end user markets and most notably the automotive market have benefited from a satisfactory final demand. However the anticipated effects of the North American slowdown on the world economies have not been balanced by previously expected stable growth rates in Europe or in Northern Asia. The situation of pronounced economic decline observed over the last few weeks could well last for several months more.
These prospects do not take into account the events of September 11, which occurred in the United States of America. It is actually impossible to evaluate, at the present time, their consequences on the evolution of its environment.
In this context, the Group foresees a negative operating income for the second half of 2001.
This press release contains certain forward-looking statements regarding anticipated market evolution and the future prospects of Usinor. While these statements are based on the Company's best estimations as of the date hereof, actual results will vary as a function of market conditions, the action of competitors consumer demand, steel prices, economic conditions and other factors.