Derichebourg reports declines in sales and earnings

Derichebourg reports a substantial decline in scrap
volumes since the middle of March.
27.05.2020 − 

The French group Derichebourg expects its ferrous and non-ferrous metals recycling business to recover by autumn, at the earliest. Activity levels have made good progress since bottoming out at the beginning of April. While they could still improve by a few more points, "it is unlikely that we will return to levels close to those prevailing before the Covid-19 crisis before the month of September at best," the company commented at the announcement of the earnings figures for its financial first half. Overall, the extent of the economic recovery will depend on how quickly economic stimulus programmes are launched at national and/or EU level and how easy they are to implement, the concern said on Tuesday.

According to Derichebourg, the lockdown restrictions imposed due to the pandemic had led to significant volume declines in the second half of March. The company estimates that at constant scope of consolidation, steel scrap volumes were down 35 per cent and non-ferrous volumes 42 per cent. For the six-month reporting period, which extends from the beginning of October to the end of March, Derichebourg's steel scrap volumes decreased by 5 percent to 1.65 million tonnes, while the amount of non-ferrous scrap improved by 11 per cent to around 298,000 tonnes. The concern attributed the increase to its takeover of the Spanish metal recycler Lyrsa, which has been included in the scope of consolidation since the beginning of January and which markets large quantities of copper and lead scrap.

The division reported revenues of around €858m. This was 10 per cent less than those achieved in the prior financial year's first half. Adjusted for extraordinary items, operating profit was down by 45 per cent to around €27m.

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