The board of directors of Italian plantmaker and steel producer Danieli & Mechanical C.Officine Spa (Danieli) has approved and issued the company’s results for the fiscal year 2011-12 which ended on June 30 this year. The board stated in its report that the results were affected by a general weakness in the recovery of the manufacturing, engineering and steel sectors and were “also adversely affected by extra costs, not foreseeable, caused in part by the halting of projects in North Africa and the Middle East."
For the given fiscal year, revenues were down by 1.2 percent to €3.08 billion, while net profit was down only marginally to €190.4 million, declining by 1.1 percent, both year on year. In the 12-month period in question, EBITDA declined by 22.4 percent to €299.7 million, while operating profit decreased by 28.8 percent to €210.8 million, both on year-on-year basis.
Despite a difficult environment, at the end of FY 2011-12 Danieli had a very large order backlog (€3.225 billion), albeit down from the same date one year earlier (€3.387 billion), with orders relating to special steels totaling €173 million on June 30, 2012 down from €380 million one year before.
A separate analysis of the two core businesses of the Italian group reveals good performances in the sector of special steels, with revenues of its special steel subsidiary Acciaierie Bertoli Safau up nine percent year on year to €891 million despite a negative fourth quarter. On the other hand, the financial performance was negative in Danieli’s plantmaking business, with revenues down five percent year on year to €2.19 billion.
FY 2011-2012, however, was a year of major investments, including the purchase of the Sisak, Croatia-based steel mil and several acquisitions in the field of plantmaking. In the current year, Danieli plans to invest in the doubling of the production capacity of Acciaierie Bertoli Safau.