The adjusted operating profit (excluding revaluation of process inventory) increased more than expected, nearly doubling the net profit. Revenue climbed 14.3% to 21,121 million SEK (18,481), surpassing Factset’s analyst consensus of 23,712.
The operating profit reached 3,062 million SEK (1,615), with an operating margin of 14.5% (8.7). Excluding the revaluation of process inventory, the operating profit amounted to 2,599 million SEK (1,212), surpassing the expected 2,529, with an adjusted operating margin of 12.3% (6.6).
Pre-tax profit totaled 2,757 million SEK (1,411), while post-tax profit was 2,192 million SEK (1,139). Earnings per share stood at 7.99 SEK (4.16).
Despite a negative free cash flow of -1,869 million SEK (-1,508), influenced by an increase in working capital, there was a positive impact of 350 million SEK from an insurance payout. Net debt amounted to 8,728 million SEK (12,386).
In his statement, CEO Mikael Staffas highlighted recent acquisitions of Somincor and Zinkgruvan, as well as the inauguration of the expansion project in Odda, a significant event in the first quarter.
“This project is on track to become the world’s most productive and climate-efficient zinc smelter. Despite its challenges, it’s a remarkable achievement that will benefit us for years to come,” said Staffas.
He also addressed the challenges faced at the Aitik mine.
“We’ve encountered difficulties in our open pits, particularly at Aitik, where we expect lower enriched volume this year due to challenging geology in the current ore extraction areas. Title: Uncovering the Hidden Truths Behind the Financial Crisis of 2008
In the fall of 2008, the world was rocked by a financial crisis that would go down in history as one of the most devastating economic events of our time. The collapse of Lehman Brothers, once one of the largest investment banks in the world, sent shockwaves through the global economy, leading to a domino effect that resulted in widespread job losses, foreclosures, and a deep recession.
But what really caused the financial crisis of 2008? Many blame it on subprime mortgages, risky lending practices, and Wall Street greed. While these factors certainly played a role, the truth is far more complex and insidious than most people realize.
At the heart of the financial crisis was a toxic mix of factors that had been brewing for years. One of the key catalysts was the proliferation of complex financial instruments known as collateralized debt obligations (CDOs) and credit default swaps (CDS). These instruments allowed banks to offload risky assets from their balance sheets, giving them the appearance of being less risky than they actually were.
But the true extent of the risk was hidden from investors, regulators, and even the banks themselves. The ratings agencies, tasked with evaluating the creditworthiness of these instruments, were complicit in the deception, giving them top ratings despite the fact that they were backed by subprime mortgages with a high likelihood of default.
As the housing market began to collapse in 2007, the cracks in the system started to show. Homeowners began defaulting on their mortgages at an alarming rate, leading to a wave of foreclosures that sent shockwaves through the financial system. Banks that had heavily invested in mortgage-backed securities found themselves on the brink of collapse, leading to a liquidity crisis that spread throughout the financial sector.
The response from policymakers was swift and decisive. The Federal Reserve stepped in to provide emergency funding to struggling banks, while Congress passed the Troubled Asset Relief Program (TARP) to stabilize the financial system. But the damage had already been done, and the effects of the financial crisis would be felt for years to come.
In the aftermath of the crisis, there were calls for reform to prevent a similar event from happening again. The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010, aimed at increasing transparency and accountability in the financial system. But many argue that the reforms did not go far enough, and that the root causes of the crisis have yet to be fully addressed.
As we look back on the financial crisis of 2008, it serves as a stark reminder of the dangers of unchecked greed and the need for robust regulation in the financial sector. While the economy has since recovered, the scars of the crisis still linger, serving as a cautionary tale for future generations. Only by understanding the true causes of the crisis can we hope to prevent it from happening again.