PARIS, August 1, 2001 (PRIMEZONE) -- Consolidated net sales of Usinor (PSE:USI) (Reuters:USI.PA) (Euroclear Paris Code:13260) for the second quarter of 2001 amounted to 3.928 million Euros compared to 4.084 million for the second quarter of 2000, or a decrease of 5.2% on a comparable basis.
For the first six months of 2001, net consolidated sales were 7.865 million Euros, compared with 8.110 million for the first half of 2000, or a decrease of 3.5% on a comparable basis.
in Euro Millions 2nd Quarter 2nd Quarter Change on
2000 2001 a Comparable
Basis
Flat Carbon Steels 2,254 2,288 -1.6%
Processing and Distribution* 1,205 987 -7.8%
Stainless Steels, Alloys and
Specialty Plates 996 899 -10.9%
Other activities 235 117 -24.3%
Intra-Group sales -606 -363 --
Usinor 4,084 3,928 -5.2%
* Total sales
Variation of net sales for the second quarter 2001 compared to second quarter 2000, in Flat Carbon Steels, reflects the present economic situation. Shipped tons, including a slightly less favorable mix, increased by only 0.3%. Average selling prices register a drop of 2% while the net sales decrease is being contained by the share of sales realized under annual contracts.
Processing and Distribution show a volume decrease of 5.6%, mainly due to construction in France while general distribution remains good. Average selling prices are down by 2.3% pursuing the downward trend observed since the last quarter of 2000.
Stainless Steels, Alloys and Specialty Steels continue to suffer, though at a lesser degree than at the beginning of the year, from a reduction of apparent consumption, especially in the United States. Shipped volumes have withdrawn by 1.8% also taking into account voluntary production cuts. Industeel has enjoyed an increase of its carbon plates activity but a reduction of its stainless activity. Average selling prices show a decrease of 9.3% clearly demonstrating the sharp price erosion observed since the second half of 2000.
For Stainless Steels, the absence of excess inventories in Europe could authorize envisaging a growth in apparent consumption compared to the first half of the year, nevertheless, price balance remains fragile. Demand is improving very slowly in the United States where inventories are still high and prices in Asia remain unstable.
In a context of general perspective of growth decrease, worldwide, one can nevertheless note a satisfactory demand from clients of the Group for flat carbon steels. Considering prolonged stoppage of installations, an improved balance between supply and demand can be contemplated for the second half of the year.
This news release contains forward-looking statements that involve a number of risks and uncertainties. These statements are based on current expectations whereas actual results may differ.