The Group’s principal activity during the year was the international trading and distribution of steel and steel making raw materials.
- 4.35 million tonnes of steel and raw material sold;
- Total revenue decreased 29% to US$1.96bn in 2017 (2015: US$2.76bn) due to the downsizing of a number of less profitable business units and product lines;
- Gross margin improves to 6.1%;
- Operating profit of US$28.9m, up 465% from a year earlier; and
- Group overhead expenditure reduced by 17%
Steve Graf, CEO of Stemcor, commented: “A key part of the Group’s restructuring was the downsizing of a number of less profitable business units and product lines. This resulted in an intentional drop in sales volumes on a year-on-year basis.
“Significant volatility in steel markets led to price reductions across the course of 2015, but there was some recovery within these markets during 2016 which, along with the full year impact of the cost reduction measures, led to an improved gross margin performance.”