6th Nov 2013 12:35
LONDON (Alliance News) - New World Resources Wednesday said its production and sales were down in the first nine months of the year as difficult market conditions hit the company.
The Central Europe-focused hard coal and coke producer said its coal production fell 25% to 6.5 million tonnes for the nine-month period ended September 30 from 8.6 million tonnes in the same period the previous year.
The company said that for the full-year it expects coal production and sales of around 9 million tonnes and 9.5 million tonnes, respectively.
New World Resources said sales fell 31% to EUR634 million during the period, down from EUR916 million the previous year, mainly as a result of lower realised prices for coking coal as well as thermal coal and lower sales volumes of coking coal.
The company also said that due to reduced price expectations for its products, an impairment loss of EUR310 million has been recognised during the nine month period.
However, the company said it reduced administrative and selling expenses 20% to EUR136 million during the period as the company conducted a thorough operational review to combat deteriorating market conditions.
New World Resources shares were up 0.3% to 83.25 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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