Luxembourg, November 6, 2013 - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris: APAM and NYRS: APEMY), announced today results for the three month period ending September 30, 2013

Philippe Darmayan, CEO of Aperam, commented:

Despite the market deterioration, we are pleased to have improved once again our operational performance compared to last year.

For the end of the year, we look positively on the recent base price increases and higher import duties in Brazil, but need to remain cautious as a result of the volatile and uncertain market conditions. In the current environment, we continue to remain focused on delivering the Leadership Journey®5.

Highlights
•Health and Safety frequency rate2of 1.9x in Q3 2013 compared to 1.4x in Q2 2013.
•Shipments of 436 thousand tonnes in Q3 2013, a 3% decrease compared to shipments of 450 thousand tonnes in Q2 2013.
•EBITDA3 of USD 62 million in Q3 2013, compared to EBITDA of USD 81 million in Q2 2013.
•Basic loss per share of USD 0.24 in Q3 2013.
•Cash flow from operations amounted to USD 17 million in Q3 2013.
•Net debt4 of USD 808 million on September 30, 2013, representing a gearing of 27%.

Prospects
•EBITDA in Q4 2013 is expected to slightly increase compared to EBITDA in Q3 2013.
•Net debt to decrease significantly in Q4 2013.

Health & Safety results analysis

Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate2, was 1.9x in the third quarter of 2013 compared to 1.4x in the second quarter of 2013.



Financial results analysis

Sales in the third quarter of 2013 decreased by 12% at USD 1,204 million compared to USD 1,366 million in the second quarter of 2013. Shipments in the third quarter of 2013 decreased by 3% at 436 thousand tonnes compared to 450 thousand tonnes in the second quarter of 2013.

EBITDA was USD 62 million in the third quarter of 2013 compared to EBITDA of USD 81 million in the second quarter of 2013. The impact of traditional seasonality and the deterioration of the stainless steel market conditions resulted in lower EBITDA in the third quarter compared to the previous quarter. Despite lower stainless steel prices, Aperam has however significantly increased its profitability compared to Q3 2012. The Leadership Journey®5 has continued to progress over the quarter and has contributed a total amount of USD 349 million to EBITDA since the beginning of 2011.

Depreciation and impairment expense in the third quarter of 2013 was USD 70 million.

Aperam had an operating loss in the third quarter of USD 8 million compared to an operating income of USD 5 million in the previous quarter.

Net interest expense and other financing costs in the third quarter of 2013 were USD 29 million, primarily related to financing costs of USD 22 million. Realized and unrealized foreign exchange and derivative losses were USD 2 million in the third quarter of 2013.

The Company recorded a net loss of USD 19 million, inclusive of an income tax benefit of USD 21 million, in the third quarter of 2013.

Cash flows from operations in the third quarter were positive at USD 17 million despite a working capital increase of USD 66 million. CAPEX in the third quarter was USD 28 million.

As of September 30, 2013, shareholders’ equity was USD 3,017 million and net financial debt4 was USD 808 million (gross financial debt as of September 30, 2013 was USD 1,118 million and cash, cash equivalents and restricted cash were USD 310 million). This net financial debt includes a positive impact of USD 39 million related to the convertible bond issued on September 19, 2013.

The Company had liquidity of USD 698 million as of September 30, 2013, consisting of cash and cash equivalents of USD 309 million and undrawn credit lines7 8 of USD 389 million.

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http://www.aperam.com/news/59/80/Third-quarter-2013-results