Central European hard coal and coke producer New World Resources (NWR) is looking to shut down or sell some of its unprofitable businesses and cut several jobs after reporting a record quarterly loss for a second time in a row.
The company, which owns some of the biggest hard coal mines in the Czech Republic, reported a net loss of €80.3m during the first quarter of fiscal 2013 due to low prices and weak demand from steel-making companies globally.
NWR, however, unveiled several measures, worth €100m, to strengthen its financial position.
As part of its plan to return to profitability, the company has commenced the process of divesting its coke operations, OKK, and is considering the closure or sale of some of its mines to focus on more profitable coking coal instead of loss-making thermal coal operations, which account for about half of the company’s sales, reports Reuters.
NWR executive director and chief financial officer Marek Jelinek told reporters on a conference call, "In the spring of 2014, you will see a different (mining company) that is undoubtedly smaller, both in terms of the number of employees and production levels."
Jelinek did not divulge details of the proposed job cuts.
Among other short-term measures are an immediate 10% group-wide cut in salaries, the sale of thermal coal inventories, and active working capital management.
Image: As part of its plan to return to profitability, NWR has commenced the process of divesting its coke operations, OKK. Photo: OKK Koksovny, a.s.