Foresee 20% drop in CAP profits in the second quarter
Company would record profit of U.S. $ 29.2 million, affected by lower iron ore prices. A 20% drop would have recorded profits of the mining and steel group CAP in the second quarter compared to the same period of 2013.
Thus was posted a poll by Reuters to analysts, which concluded that the profits of the company would have been affected primarily by the decline in international iron ore prices, despite a rise in sales volumes.
CAP would score gains of $ 29.2 million in April-June, according to the median estimate of six stockbrokers.
Reuters specified that the range projections ranged from a gain of $ 21 million and U.S. $ 45.9 million. While the average was U.S. $ 30.7 million. “The average reference prices for iron ore fell 18% between the second quarter of 2013 and second quarter of 2014, element we expect be reflected in the results of CAP”, said BCI in a report to clients.
“The tighter financial conditions in China have raised some doubts about using iron ore as collateral. A restriction to this type of operation coupled with lower prices, could cause inventory liquidations and major damage to the iron market, “said Bice Inversiones. They added that they revised down its estimate for the price of iron to U.S. $ 103 per ton in 2015; U.S. $ 97 / t in 2016, and U.S. $ 92 / t for the long term.
The survey also showed that EBITDA-earnings before interest, taxes, depreciation and amortization, have fallen 20% in the April-June quarter, to $ 125.4 million. While the group’s revenues have declined by 10.3% yoy to U.S. $ 512.35 million.
With the quarterly estimate, CAP would score a gain of U.S. $ 59.6 million in the first half, a figure 27% lower compared to the same period last year.
Source: La Tercera
