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Severfield-Rowen trading in line with expectations but 'tough year' ahead

Steel giant Severfield-Rowen said that trading so far this year has been in line with its expectations with its expectations and reiterated that 2010 will be a tough year for the industry.

In an interim management statement covering the year to 29 April 2010 the UK’s biggest supplier of structural steel also said that demand and pricing levels in the UK and Ireland remained poor, but added that it was growing its UK market share.

The firm said: “As has been widely reported in the media, steel product prices have already risen and will continue to rise in the first half of 2010 due to raw material cost increases.

“[Severfield] remains very aware of these movements and has taken steps to ensure that their impact is minimal.”

Severfield, which is supplying steel for the £2 billion Shard building in London Bridge and the Heron building in London’s Bishopsgate, said its order book stands at £241 million, up from £219 million in March.

New orders include the supplying structural steelwork for the new Terminal 2 building at Heathrow Airport.

Severfield said the production plant of its new joint venture company in India is due to begin operations in a few months, as planned.

In March, Severfield said it expected 2010 to be the low point for structural steel demand, with markets recovering in 2011, as it reported a drop in profits and turnover in 2009.

Turnover for the year to 31 December 2009 was £349 million, down 11 per cent from £394 million in 2008.