Afarak Group shares slides as profit guidance raised

14th Aug 2015 11:21

(ShareCast News) - Shares in Afarak Group rose after the steel company said its full year profits would be "significantly" higher in 2015.The Finland-based metals firm's share price fell by 16.92% to 27p at 1135 BST, after the announcement. In its last update in May, Afarak had said full year profit would be "improved" from the year before.The company posted second quarter profit up to €5.7 from €1.2m, off revenues up by 12.2% to €53.1m from €47.3m.Earnings per share for the quarter were up to €0.02 from €0.01.The global growth in stainless steel production is expected to lead an increase in demand for chrome products in 2015, Afarak said."However, as occurred in 2014 where the chrome industry has not been able to increase chrome product prices it is unclear whether this upswing in prices will occur in 2015," the company said.Shore Capital said in a note the upgrade was due to the weakening of the rand relative to the dollar, but also to improved FerroAlloys sales and the reopening of its South African Mecklenburg mine late last year.