Group's turnover fell 10% in the 1st half of 2012 compared with the 1st half of 2011, to €1,735 million.
Global economic activity continued to weaken in the first half of 2012, particularly in Europe, and even in China, where growth slowed. Global growth forecasts were recently revised downwards.There was also slower growth in global carbon and stainless steel production.
Results for the first half of 2012 were also hit by non-recurring technical incidents at ERAMET Manganese which represented €40 million in negative impact on current operating income, which totalled €81 million for the Group as a whole.
ERAMET Manganese's turnover totalled €753 million, a 18% decrease for the 1st half of 2012 compared with the 1st half of 2011, while ERAMET Nickel's turnover decreased 15% in the 1st half of 2012 compared with the 1st half of 2011, totalling €460 million. ERAMET Alloys' turnover totalled €526 million in the 1st half of 2012, an 11% increase compared with the 1st half of 2011. Business was particularly brisk in aerospace, where turnover rose 25%.
“Despite the current slowdown, demand for the Group's metals and alloys still has substantial development potential, particularly in emerging countries,” the report said. “Over the long term, the exhaustion of old deposits and the need to meet growing demand will call for specific technologies, particularly those developed by ERAMET, to process increasingly complex ores.Given the global crisis, without calling its strategic project into question, the ERAMET Group has decided to be more selective in its capital expenditure decisions in the coming years.”