Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris: APAM and NYRS: APEMY), announced today results for the three-month period ended September 30, 2015

Timoteo Di Maulo, CEO of Aperam, commented:
“As expected, the third quarter was marked by seasonality and decline in nickel price. However, Aperam was able to offset most of these impacts thanks to the agility and the resilience of its business model.

For the fourth quarter, we remain cautious given the current economic environment but we are confident we will continue to deliver on the Leadership Journey®5 and the Top Line strategy.

Looking ahead, we see stainless steel fundamentals improving in our markets and we are confident in the ability of Aperam to generate sustainable cash returns. Therefore, we are happy to reinstate dividend.”

Highlights
•Health and Safety frequency rate 2 of 1.2x in Q3 2015 compared to 0.8x in Q2 2015.
•Shipments of 455 thousand tonnes in Q3 2015, a 6% decrease compared to shipments of 486 thousand tonnes in Q2 2015.
•EBITDA 3 of USD 108 million in Q3 2015, compared to EBITDA of USD 155 million in Q2 2015.
•Basic earnings per share of USD 0.40 in Q3 2015 and USD 1.79 for year to date September 2015 compared to USD 0.97 for year to date September 2014.
•Cash flow from operations amounted to USD 65 million in Q3 2015 compared to USD 78 million in Q2 2015.
•Net debt 4 of USD 419 million as of September 30, 2015, representing a gearing of 19% compared to a net debt of USD 454 million as of June 30, 2015.

Prospects
•EBITDA in Q4 2015 is expected to be comparable to EBITDA in Q3 2015.
•Net debt is expected to decrease in Q4 2015.

Financial policy
•Aperam restates a base dividend of USD 1.25/share (subject to AGM approval), which is anticipated to progressively increase over time, as the company continues to improve its sustainable profitability benefiting from its strategic actions.

Financial Highlights (on the basis of IFRS)
(USDm) unless otherwise stated
Q3 15 Q2 15 Q3 14 9M 15 9M 14
Sales 1,113 1,264 1,353 3,635 4,191
EBITDA 108 155 137 396 430
Operating income 67 109 82 262 243
Net income 31 66 21 139 76

Steel shipments (000t)455 486 433 1,410 1,374
EBITDA/tonne (USD)237 319 316 281 313
Basic earnings per share (USD)0.40 0.85 0.27 1.79 0.97

Health & Safety results analysis
Health and Safety performance, based on Aperam personnel figures and contractors’ lost time injury frequency rate2, was 1.2x in the third quarter of 2015 compared to 0.8x in the second quarter of 2015.

Financial results analysis
Sales in the third quarter of 2015 decreased by 12% at USD 1,113 million compared to USD 1,264 million in the second quarter of 2015. Shipments in the third quarter of 2015 decreased by 6% to 455 thousand tonnes compared to 486 thousand tonnes in the second quarter of 2015, mainly due to the seasonal effects in Europe.

EBITDA was USD 108 million in the third quarter of 2015 compared to EBITDA of USD 155 million in the second quarter of 2015. The continuing progress of the Leadership Journey®5 and the Top Line strategy as well as the agility of the Brazilian operations enabled to compensate most of the negative impacts of the traditional seasonality in Europe, the current economic environment, the recent decline in the nickel price and the tightness in raw material market conditions. The Leadership Journey® has continued to progress over the quarter and has contributed a total amount of USD 466 million to EBITDA since the beginning of 2011.

Depreciation and amortization expense in the third quarter of 2015 was USD 41 million.

Aperam had an operating income in the third quarter of USD 67 million compared to an operating income of USD 109 million in the previous quarter.

The Company recorded a loss from other investments of USD 6 million in the third quarter related to an impairment loss of USD 4 million booked on the minority stake it holds in Gerdau, a Brazilian steelmaker, and USD 2 million booked on the minority stake it holds in General Moly, a US molybdenum mining company.

Net interest expense and other financing costs in the third quarter of 2015 were USD 15 million, primarily related to financing costs of USD 6 million. Realized and unrealized foreign exchange and derivative losses were USD 7 million in the third quarter of 2015.

The Company recorded a net income of USD 31 million, inclusive of an income tax expense of USD 8 million, in the third quarter of 2015.

Cash flows from operations in the third quarter were positive at USD 65 million, despite a working capital increase of USD 43 million. CAPEX in the third quarter was USD 26 million.

As of September 30, 2015, shareholders’ equity was USD 2,225 million and net financial debt4 was USD 419 million (gross financial debt as of September 30, 2015 was USD 487 million, cash and cash equivalents were USD 68 million).

The Company had liquidity of USD 543 million as of September 30, 2015, consisting of cash and cash equivalents of USD 68 million and undrawn credit lines6 of USD 475 million.

Operating segment results analysis

Stainless & Electrical Steel
The Stainless & Electrical Steel segment had sales of USD 855 million in the third quarter of 2015. This represents a decrease of 17% compared to sales of USD 1,031 million in the second quarter of 2015. Shipments during the third quarter were 429 thousand tonnes. This is a decrease of 11% compared to shipments of 483 thousand tonnes in the previous quarter. The volume decrease was mainly due to the seasonal impact in Europe compared to the second quarter. Overall, average selling prices for the Stainless & Electrical Steel segment were lower for the quarter.

The segment had EBITDA of USD 94 million in the third quarter of 2015 compared to USD 139 million in the second quarter of 2015. In South America, the optimisation of sales portfolio and the positive contribution of the Leadership Journey® together with a lower Brazilian Real compensated the weaker domestic market conditions in Brazil. In Europe, the impact of lower volumes and the tension on scrap prices was partly compensated by the continuous contribution of the Leadership Journey® and the Top Line strategy.

Depreciation and amortization expense was USD 34 million in the third quarter of 2015.

The Stainless & Electrical Steel segment had an operating income of USD 60 million during the third quarter of 2015 compared to an operating income of USD 100 million in the second quarter of 2015.

Services & Solutions
The Services & Solutions segment had a 10% decrease in sales during the quarter, from USD 569 million in the second quarter of 2015 to USD 510 million in the third quarter of 2015. In the third quarter of 2015, shipments were 187 thousand tonnes compared to 202 thousand tonnes in the previous quarter. The Services & Solutions segment had lower average selling prices during the period compared to the previous period.

The segment had EBITDA of USD 2 million in the third quarter of 2015 compared to EBITDA of USD 14 million in the second quarter of 2015. The decline of EBITDA was due to the traditional seasonal impact in Europe and the negative stock effect resulting from the steep decline in nickel prices.

Depreciation and amortization expense was USD 4 million in the third quarter of 2015.

The Services & Solutions segment had an operating loss of USD 2 million in the third quarter of 2015 compared to an operating income of USD 9 million in the second quarter of 2015.

Alloys & Specialties
The Alloys & Specialties segment had sales in the third quarter of 2015 of USD 125 million, representing a decrease of 20% compared to USD 157 million in the second quarter of 2015. Shipments in the third quarter of 2015 were down by 30% to 7 thousand tonnes compared to 10 thousand tonnes in the previous quarter. Shipments for year to date September 2015 at 27 thousand tonnes show a 4% improvement compared to year to date September 2014 at 26 thousand tonnes. Average selling prices decreased quarter over quarter.

The Alloys & Specialties segment achieved EBITDA of USD 9 million in the third quarter of 2015 compared to USD 13 million in the second quarter of 2015. EBITDA was down in the third quarter compared to the second quarter primarily as a result of the seasonal impact in the third quarter. EBITDA for year to date September 2015 is at USD 36 million compared to year to date September 2014 at USD 47 million, mainly due to negative foreign exchange translation effects.

Depreciation and amortization expense in the third quarter of 2015 was USD 2 million.

The Alloys & Specialties segment had an operating income of USD 7 million in the third quarter of 2015 compared to an operating income of USD 12 million in the second quarter of 2015.

New developments
•On November 5 2015, Aperam declared its financial policy to maximize the long term growth and sustainability of the company as well as the value accretion for its shareholders while maintaining a strong balance sheet. Aperam restates a base dividend of USD 1.25/share (subject to AGM approval), as the company continues to improve its sustainable profitability benefiting from its strategic actions. The company targets a NFD/EBITDA ratio of <1x (through the cycle). In the (unlikely) event that NFD/EBITDA exceeds 1x, the company will suspend the cash dividend. The dividend will be paid in four equal quarterly installments of US$0.3125 (gross) per share. The detailed dividend payment schedule will be published with the full year 2015 results and is expected to be similar to the previous dividend calendars.


reactie XEA.nl
Er wordt nu wel geroepen goede prestaties van Aperam, is dat wel zo? De halvering van de winst.
Je laat winst glippen en dat is geen goede prestatie.

tijd 13.37
Het aandeel wordt gestuwd naar EUR 33,09 +5,18 vol. 1,5 milj.