Studsvik decreased the company’s risk exposure with the sale of its U.S. operations, according to the company’s first quarter interim report posted yesterday. Studsvik sold its processing facilities in Erwin and Memphis, Tenn., the acquisition of the THOR technology for the commercial North American and Chinese markets, and Studsvik’s portion of the joint venture it had formed with EnergySolutions for the SEMPRASAFE resin blending process to EnergySolutions for approximately $23 million in a deal that was finalized last month. “After divestment of the American operations the Group’s total risk exposure has decreased,” the interim report said.
Studsvik reported a positive operating profit for the first quarter, although the profit is down compared to the same period in 2013. The operating profit was approximately $803,000 for the first quarter, down from the $1.1 million reported in 2013. Sales for the quarter amounted to $33.2 million, down from the $37.9 million earned in the first quarter of 2013. One of the largest decrease in sales occurred in the waste treatment segment of the company. Sales in the waste treatment segment amounted to $10.1 million, down 32.8 percent compared to 2013, but the operating profit for the segment increased to $1.4 million this quarter. Studsvik associated the decrease in sales to an unusually large intake of metal from the Berkeley project in 2013. The company also said that more changes to aid in profitability are coming in the future. “Projects for changing the price structure, improving efficiency of production and cost savings, mainly in administration and purchasing, are currently in progress in the business area,” the report said. “The order book for metal treatment is sound, while the order book for incineration has been impacted negatively by reduced volumes from Germany.”
