Afarak H1 revenue falls on weak European demand
Afarak H1 revenue falls on weak European demand
Overview
Finland specialist alloy producer's H1 2026 revenue fell 25.9% yr/yr to EUR 57.1 mln
EBITDA and EBIT for H1 2026 declined sharply compared to prior year
Company attributed declines to reduced European consumption and war-related disruptions
Outlook
Afarak expects demand for standard grade low carbon ferro-chrome to improve after summer
Company says weak US$ and cheap imports will continue to pressure profit margins and prices
Specialty segment may see more substantial improvements in demand; South African chrome ore stable
Result Drivers
EUROPEAN DEMAND DROP - Co said steep decline in European consumption, especially in automotive and oil and gas sectors, weighed on results
WAR-RELATED DISRUPTIONS - Disruptions from the Iran and Ukraine wars gravely impacted customer base, per CEO Guy Konsbruck
PRODUCTION CUTS - Co reduced LC FeCr production to match lower demand
Company press release: ID:nGNE8YGh0b
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| EUR 57.10 mln |
|
H1 EPS |
| EUR 0 |
|
H1 EBIT |
| EUR 500,000 |
|
H1 EBITDA |
| EUR 1.60 mln |
|
H1 Pretax Profit |
| EUR 100,000 |
|
Reuters Recommended Reads
Aug 11 - Merafe profit up 64%, flags ferrochrome glut as China ramps up output
Aug 13 - Canada's Eastern Platinum Q2 net loss widens on lower sales, higher costs
Aug 14 - Ukraine's war-hit steel industry faces new obstacle: EU rules
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)