NWR - OKD will reduce its workforce, measures should save 100 mln. EUR this year

OKD, owned by NWR, will let go 250 of its technical and administrative workers and reduce by one-third, to 2,700, the number of contract miners. Of these miners, two-thirds are from Poland and one-third are local. NWR posted a net loss of CZK 2.1 bln in the first quarter. OKD said it is losing money on every ton it mines. /Neutral, NWR reiterates what it said earlier. The proposed measures should lead to 100 mln. EUR savings this year. However, note, the measures are based on an assumption of stable coking coal prices in 2H13 compared to 1H13 while price indications for 3Q13 show further drop in prices for coking coal contract prices