combination of higher lead scrap prices and maintenance
shutdowns at two German operations led Recylex SA to record a
net loss in the first half of the year.
interim results were impacted by scheduled maintenance
shutdowns at the two major plants in the lead and zinc
segments, which had a severe impact on earnings, as well as
intense competition in scrap supplies which penalized margins
in the lead business in particular," Recylex chairman and chief
executive officer Yves Roche said.
The French lead and
zinc recycler posted a net loss of 15.9 million ($21.1
million) for the six months ended June 30, nearly 10 times the
1.6-million net loss seen in the same year-ago period, on
revenue that fell 9.9 percent to 209.4 million ($276.8
million), the company said Aug. 29.
business saw sales slip 3.2 percent to 39.1 million
($51.9 million), while operating income fell 40.6 percent to
1.9 million ($2.5 million) from 3.2 million a year
earlier due to a six-week maintenance shutdown at its
Harz-Metall Waelz GmbH oxide processing plant in Goslar,
The company also
overhauled its Nordenham lead smelter in Germany over the past
two years to protect margins and boost production, resulting in
stable output during the six-month period despite a three-week
maintenance outage in the third quarter. The plant posted an
operating loss of 13.1 million ($17.4 million) in the
first half, up from a 2-million operating loss in the
same year-ago period.
Recylex in June
announced plans to shut a secondary lead smelter in Belgium in
response to lead scrap competition that led the plant to be a
69,973 tonnes of lead in the first half, down 11.2 percent from
78,836 tonnes a year earlier.