Interseroh AG Reports Increase in Profit for Q1

Interseroh, the service and raw materials trading group based in Cologne, Germany, has announced that it has increased turnover and profit in the first quarter of 2008 relative to the same period in 2007. Consolidated group turnover rose in the first three months by 20.59 percent to 527 million euros, compared to 437 million euros for the first quarter of 2007.

Turnover in the steel and metals recycling segment increased from 305.9 million euros to 405.1 million euros, while the services segment contributed 69.4 million euros to the turnover. This is a decline from 93.1 million euros during the first quarter of 2007. Turnover in the business segment for raw materials trading increased from 46.4 million euros to 61 million euros.

Interseroh’s earnings before taxes (EBT) increased from 16.6 million euros in the first quarter of 2007 to 17.3 million euros this year, while the EBIT (earnings before interest and taxes) grew from 17.8 million euros to 19.5 million euros.

Higher prices for steel and metal scrap relative to the first quarter of 2007 contributed to the strong boost in turnover in the steel and metals recycling segment, according to Interseroh. The company was able to increase sales because of its purchases of new locations that were completed in the business year 2007.

Interseroh reports that margins for its services group were under pressure during the first quarter. The company refrained from sales of consumer packing in light of what it describes as “the aggressive and in part non-cost-covering price competition.”

Traded tonnages increased in light of the further acquisition of free trade quantities and increasing prices for recovered paper. The market for plastics was characterized by slightly lower tonnages in light of small volumes in the services segment and slight price increases. The traded tonnages of wood scrap decreased compared to the first quarter of 2007, largely because of the sale of the Lünen location at the end of the business year 2007. The purchasing and trading prices were under pressure because of the high demand for wood scrap.

Interseroh says it expects high prices in the steel and metals recycling segment in the near term, while the company expects decreasing paper prices and stable plastic prices.