German plate producer Dillinger Hütte has announced its financial results for 2013, stating that a weak economic environment and worldwide overcapacities placed extreme pressure on the heavy plate market. With utilization of capacities among heavy plate manufacturers in the EU at only about 60 percent, and with consumption declining, prices also fell continuously in 2013. The heavy plate market was particularly hard-hit as important pipeline projects were delayed or completely canceled. Because of the declining production and sales volumes as well as a significantly decreased revenue level, Dillinger Hütte Group concluded the 2013 financial year with a loss.
Dillinger Hütte reported a net loss of €66 million in 2013, compared to a net profit of €261 million in the previous year. The company's revenues decreased by 20.8 percent year on year to €1.98 billion. In the given year, the company produced 2.02 million mt of crude steel, down 12 percent, while heavy plate shipments decreased by 9.6 percent to 1.67 million mt, both year on year.
Dillinger Hütte expects business performance to improve overall in 2014, even though it will likely continue to be problematic. A slight increase in demand is expected in the standard range product category, such as the offshore wind, offshore oil and gas sector, and in machine manufacturing. Given the placement of the order in early 2014 for most of the volume needed for the first offshore pipeline of the South Stream project, the pipe plate product range appears destined for a better year, at least in terms of volume.
According to Dillinger Hütte's statement, the announced price increases for the second quarter are now being implemented, while further increases are planned for the third quarter. As a result of the systematic implementation of the ongoing restructuring and cost-cutting program - and on the condition that there are no unexpected increases in raw materials or energy costs - improved revenues and operating results are expected in 2014, even if they continue to be at an unsatisfactory level.
