TŽ Annual Report 2008 in pdf, 7.5 MB - Třinecké železárny

170 yearsTŽ has an equity share in 27 companies, either with the deciding vote or a substantial minor vote. The majority of the TŽ subsidiarycompanies focus on activities related directly or indirectly to the business in the steel industry and this focus corresponds to the longterm business strategy of TŽ.The TŽ capital shares are managed by means of the representatives in the statutory bodies of those companies and is focused on thecreation of strategic objectives, co-ordination of the business plans, creation of investment, financial, and commercial strategies, aswell as unifying the main processes. The objective of all entities’ management within the TŽ Group is increasing their value; theircontribution to the group is regularly checked and evaluated in the form of analyses and reporting.Financial SituationAt the end of 2008, the financial situation of TŽ was significantly influenced by the developing financial crisis and resulting dramaticdrop of demand for rolled products as well as the prices; that is why we were forced to regulate production.Mainly thanks to the favourable development in three quarters of 2008, we managed to achieve a favourable profit in the amount of CZK1,517 million (compared to 2007 lower by CZK 3,007 million, or by CZK 1,894 million compared to 2006).Regarding production, the year-on-year output of pig iron decreased by 91 kt and output of crude steel dropped by 115 kt, or a 50 kt dropin pig iron and 68 kt drop in crude steel compared to 2006. This was caused by the negative trends of the commercial situation in the lastquarter of 2008.Total production achieved the amount of CZK 38,242 million (CZK 36,147 million in 2007 and CZK 32,361 million in 2006), whichrepresents growth by CZK 2,095 million compared to 2007 (or by CZK 5,881 million compared to 2006). Growth, when compared to2006, can be attributed primarily to the higher sales of rolled goods and steel (+CZK 1,415 million), which was influenced by the highersales price (+1,182 CZK/t), whilst the sales volume had a negative effect (–91 kt). The year-on-year growth of total production was alsoinfluenced by the re-evaluation of own production inventories.BLOOM AND HEAVYSECTION MILLTŘINEC RAILS PRODUCTION HAS A TRADITIONMORE THAN 130 YEARS LONGA N N U A L R E P O R T T Ř I N E C K É Ž E L E Z Á R N Y , a . s . 2 0 0 823