Stable costs and production, high delivery levels and continued strong demand for LKAB’s climate-smart iron ore pellets indicate that 2014 has gotten off to a good start for LKAB. This is to be read in the Interim Report for the first quarter of 2014, published at www.lkab.com on the 29th of April.
January- Mars 2014
• Net sales totalled MSEK 5,959 (5,317)
• Operating profit was MSEK 1,946 (1,527)
• Profit before tax was MSEK 2,026 (1,558)
• Profit for the period totalled MSEK 1,590 (1,231)
• Operating cash flow totalled MSEK 2,121 (-300)
• Deliveries of iron ore totalled 6.6 (6.3) MT
Due to higher delivery volumes and higher prices, consolidated net sales increased by 12 percent and operating profit increased by 27 percent compared to the first quarter of 2013.
Demand for LKAB’s products continued to be strong during the quarter. We delivered 6.6 (6.3) Mt of iron ore products, a 5 percent increase. With the tougher environmental requirements, in for example China, demand for high-grade iron ore increased in the first quarter. There is a strong market for high-quality, energy-efficient iron ore pellets, which fits the strategy of LKAB well.
LKAB's production during the quarter was at a high, steady level of 6.6 (6.1) Mt, which is 8 percent higher. High production availability also results in lower costs per tonne.This clearly shows that LKAB:'s persistent preventive maintenance efforts continue to show results.
LKAB is awaiting permission to start up new iron ore mines in the Svappavaara field. The planned production start in Mertainen
is delayed so that the full effect of LKAB’s growth program has shifted.