The current operating income of ERAMET group is at €294M, up by 15% compared to H1 2017.
Christel BORIES, Chairman and CEO of the Group, commented: “Following an excellent 2017 year, ERAMET’s first-half fundamentals remain strong. Our mining activities continued to benefit from a favourable prices environment and good production levels at COMILOG. However, they were penalised by the impact of the euro-US dollar exchange rate and the increase in brent prices. In addition, the decrease in manganese alloys prices resulted in a margin squeeze whereas sales from Aubert & Duval declined sharply in the aerospace and energy sectors.
In this environment, all of our teams are fully committed to implementing our managerial and strategic transformation. A number of initiatives have been implemented, but challenges are still to be met. We are especially committed to improving the operational performance of SLN after a first-half which did not meet our expectations. At the same time, we are fully focused on accelerating the ramp-up of the Sandouville plant. Finally, we are conducting a detailed review of the operational measures that should enable a sustainable recovery in Aubert & Duval’s activities, as well as of the strategic options in the medium term.
We are also stepping up the development of our growth drivers and are pleased with the success of our takeover offer for MDL. It is the right decision, made at the right time, which respects our value creation criteria. It will enable us to fully consolidate TiZir (100%) and to strengthen our portfolio in the attractive mineral sands sector.
Whilst remaining vigilant regarding the market environment, we approach the second half of 2018 with determination, and are continuing our efforts to progress on the pathway of sustainable and profitable growth that we have established.”