“ Improved quarterly operational results in a challenging market
Luxembourg, July 31, 2019 (07:00 CET) - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Brussels,
Luxembourg, Paris: APAM and NYRS: APEMY), announced today results for the three month period ending June 30, 2019
? Health and Safety: LTI frequency rate of 1.2x in Q2 2019 compared to 1.1x in Q1 2019.
? Steel shipments of 465 kt in Q2 2019, a 7% decrease compared to steel shipments of 501 kt in Q1 2019.
? EBITDA of EUR 95 million in Q2 2019 versus EUR 81 million in Q1 2019. H1 2019 EBITDA EUR 176 million, -40% yoy.
? Net income of EUR 57 million in Q2 2019, compared to EUR 25 million in Q1 2019 .
? Basic earnings per share of EUR 0.69 in Q2 2019, compared to EUR 0.30 in Q1 2019.
? Cash flow from operations amounted to EUR 97 million in Q2 2019, compared to EUR 71 million in Q1 2019.
? Free cash flow before dividend and share buy-back of EUR 72 million in Q2 2019, compared to EUR 24 million in Q1
? Cash returns to shareholders amounted to EUR 132 million in Q2 2019, consisting of EUR 93 million of share buy-back and EUR 39 million of dividend.
? Net financial debt of EUR 176 million as of June 30, 2019, compared to EUR 106 million as of March 31, 2019.
? Transforming our footprint with state of the art equipment: CAPEX Guidance 2019 updated to EUR 150 million from EUR 175 million before. Genk cold rolling and annealing & pickling line with a total investment of ~EUR 130
million between 2018 and 2020 on track.
? Leadership Journey ® 2 (Phase 3 - Transformation Program Target EUR 200 million annualized gains by 2020):
Gains reached EUR 89 million cumulated at end Q2 2019 with good progress on all pillars.
? Completion of the 2019 share-buyback: 3.7 million shares have been bought back for EUR 92.6 million. New number of shares outstanding as of June 30, 2019 is 79.8 million shares.
? EBITDA in Q3 2019 is expected to decrease compared to Q2 2019, due to the seasonal slowdown in Europe, rising imports, declining demand and low international prices.
? Net financial debt to remain stable at a low level in Q3 2019.
Timoteo Di Maulo, CEO of Aperam, commented:
“Aperam delivered an improved operational performance this quarter despite a challenging global market environment. Imports start increasing once again commanding a disproportionate market share and put extreme pressure on pricing. The measures put in place by the European Commission are ineffective so far, as Indonesia continues to remain exempted and import quotas have been increased while demand has dropped.
Looking ahead, to counter these challenges our ability to realize further gains via the Leadership Journey® will be key. We are also confident in our ability to generate cash flow and rely on a solid balance sheet. We continue to take all the necessary measures to weather a challenging market environment.“
see more on