Annual Report 2012 EUROPE BELGIUM BULGARIA ... - Duferco

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It is now clear that the world recovery of 2010-2011 was mostly driven by Chinese aggressive reflationary policies, while developed economies remained stagnant. Steel intensity of the developed world is such that with zero growth, steel consumption actually declines. Europe is showing clear signs of deepening differences among individual countries, with two different speeds of economic potential. South Europe is suffering a dramatic economic contraction, and the budget constraints leave very little hope of an upturn, given that governments and consumers must reduce expenditures, and the banking system is still under stress, reducing as a consequence the level of lending to the economy. The year just ended was very difficult indeed with traumatic consequences on several economic sectors and actors. In such a “defensive” environment, we at Duferco are glad to have been able to still show a profit, maintaining healthy financial conditions. Our expectations for the current year are not very positive. We will probably see an upturn in North America, given the improved liquidity, the stabilization of the housing market, and the strong fundamentals for re-industrialization (cheap energy, flexible labour and so on). Asia will grow, but at a lower level than expected, mainly due to the looming inflationary pressures in China. South America may be suffering from a change in sentiment in raw materials. Europe, as said before, will see very little growth, with export being the only possible economic driver. The above picture leads to a continuation, if not a deterioration, of steel oversupply. Defense will continue to be the main line of our policy. Steel trading activities have been profitable although at a lower level than 2010 and 2011 and are expected to remain at a similar level for 2013. An important strategic move that will add significantly to our business and to our balance sheet is in course of finalization, with formal execution expected to be signed by June 2013. The industrial steel venture in Italy with Nucor continues to suffer since its production is almost entirely directed to the construction industry. The partners continue to support it financially, and have just approved an investment that will allow a widening of the portfolio with the view to diversify it to sectors other than construction. Our energy trading and retail is showing solid profit, in spite of the difficult market in Europe. Our ships’ Joint Venture is obviously suffering from the considerable oversupply. However, the relatively small sizes of the owned ships, the continuous search for “niches” employment of these ships, and the comfortable level of leverage make us confident to overcome the present difficult times without problems. As said before, we are fully aware that these are difficult times that need a defensive and prudent approach. Eventually, this kind of crisis will create opportunities that, at the right time, we intend to take advantage of. Bruno Bolfo Message from the Chairman | 3
Duferco System Key Data F.Y. 2010 F.Y. 2011 F.Y. 2012 Total Sales Volume* 20,108 20,423 19,401 (Thousand Metric Tons) Trading activities 11,302 13,254 13,563 Steel products 6,808 7,466 5,582 Raw materials 4,494 5,788 7,981 Production activities 5,763 4,800 2,879 Long products 923 997 1,810 Flat products 4,840 3,802 1,070 Distribution activities 3,043 2,369 2,958 Long and tubular products 717 939 1,319 Flat products 2,326 1,430 1,640 * Including Intercompany Transactions 4 | Duferco Annual Report 2012
Page 1 and 2: Annual Report 2012 Europe BELGIUM B
Page 3 and 4: Contents 2 Message from THE Chairma
Page 5: Message from the Chairman 2 | Dufer
Page 9 and 10: Sales (in Thousand Metric Tons) 6 |
Page 11 and 12: Strategy 8 | Duferco Annual Report
Page 13 and 14: Strategy Some countries of the Euro
Page 15 and 16: Strategy positive performance achie
Page 17 and 18: Strategy Concentration on electric
Page 19 and 20: Trading 16 | Duferco Annual Report
Page 21 and 22: Trading As mentioned in previous co
Page 23 and 24: Breakdown of trading activities sal
Page 25 and 26: Industry 22 | Duferco Annual Report
Page 27 and 28: Duferdofin - Nucor Italy Production
Page 29 and 30: Production (mt) (01/10/11 - 30/09/1
Page 31 and 32: Duferco Belgium: Long Products Divi
Page 33 and 34: Duferco Danish Steel Denmark Produc
Page 35 and 36: Duferco Steel Processing Republic o
Page 37 and 38: Vanchem Vanadium Products Republic
Page 39 and 40: Production in Fiscal Year 2012 (Met
Page 41 and 42: Distribution and service centres 38
Page 43 and 44: Distribution in Fiscal Year 2012 (M
Page 45 and 46: Energy 42 | Duferco Annual Report 2
Page 47 and 48: Energy Trading Operations Sales of
Page 49 and 50: Diversification in Belgium From yea
Page 51 and 52: Diversification in Belgium Energy E
Page 53 and 54: Shipping Duferco Shipping SA provid
Page 55 and 56: Duferco Engineering The drastic red
Page 57 and 58:
Duferco Engineering Business Area:
Page 59 and 60:
The Duferco System Organisation Hea
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The Duferco System Organisation Cor
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Duferco Worldwide Network s Corpora
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Duferco Worldwide Network s Corpora
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Duferco Worldwide Network Trading 1
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Fred Torgian M Europe Bromsgrove Ti
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North, Central and South America Ne
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Duferco Worldwide Network EUROPE It
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Duferco Worldwide Network OMEGA POW
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Duferco Worldwide Network PORTUGAL
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Duferco Worldwide Network MEXICO IR
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Duferco Worldwide Network PEOPLE’
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Duferco Worldwide Network EUROPE NO
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Design: Graphicamente - Milano (Ita
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Annual Report 2012 EUROPE BELGIUM BULGARIA ... - Duferco

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