ALBA Group reports profitable 1H 2016

ALBA Group reports profitable 1H 2016
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Cologne, Germany-based ALBA SE says it has generated earnings before taxes of €11.7 million ($13 million) in the first six months of 2016, down from the €16 million ($17.8 million) it earned in the first half of 2015.

The company says 2016 involved operating in “extremely difficult framework conditions in the steel and metals recycling segment.” Dr. Axel Schweitzer, ALBA’s chair, comments, “We have managed to improve the margins in the steel and metals recycling segment through our in-depth value-adding measures in conjunction with our structural cost reductions. The continuing crisis did, however, lead to a strong decline in the volumes being traded, and as result, to a significant reduction in the gross profit.”

Revenue in the first half of 2016 fell compared to the first six months of 2015 by around €301 million ($336 million), or 38%, to €491 million ($548 million). While revenue generated in the services segment increased, a “strong fall in revenue in the steel and metals recycling segment occurred due to a weak market demand and low price levels,” according to the company.

ALBA says its traded quantity of iron scrap was 695,000 tonnes in the first half of 2016, down by 37% compared to more than 1.1 million tonnes during the same period in 2015. Nonferrous volume in the first half of 2016 was 123,000 tonnes, down 32.7% from 183,000 tonnes in the first six months of 2015.

The Interseroh packaging recycling business “remained on the same level compared with the first six months of 2016,” says ALBA, while sales in the Recycling Solutions Interseroh (management of waste from branches, warehouses and production sites and marketing of the raw materials gained) division increased marginally.

Revenue in the services segment in the first half of the year was €174.4 million ($195 million), up slightly from sales of €172.1 million ($192 million) in the first half of 2015.

ALBA SE management says for the entirety of 2016 it expects “to see on the whole a significant fall in the volumes of iron scrap in the current financial year due to the difficult situation on the steel market, as well as due to the planned continuation of [our] portfolio optimisation.” 

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Source: Recycling Today
ALBA Group reports profitable 1H 2016
<![CDATA[Cologne, Germany-based ALBA SE says it has generated earnings before taxes of €11.7 million ($13 million) in the first six months of 2016, down from the €16 million ($17.8 million) it earned in the first half of 2015.   The company says 2016 involved operating in “extremely difficult framework conditions in the steel and metals recycling segment.” Dr. Axel Schweitzer, ALBA’s chair, comments, “We have managed to improve the margins in the steel and metals recycling segment through our in-depth value-adding measures in conjunction with our structural cost reductions. The continuing crisis did, however, lead to a strong decline in the volumes being traded, and as result, to a significant reduction in the gross profit.”   Revenue in the first half of 2016 fell compared to the first six months of 2015 by around €301 million ($336 million), or 38%, to €491 million ($548 million). While revenue generated in the services segment increased, a “strong fall in revenue in the steel and metals recycling segment occurred due to a weak market demand and low price levels,” according to the company.   ALBA says its traded quantity of iron scrap was 695,000 tonnes in the first half of 2016, down by…