Luxembourg, February 6, 2014 - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris: APAM and NYRS: APEMY), announced today results for the three month and full year periods ending December 31, 2013.

Philippe Darmayan, CEO of Aperam, commented:
“In 2013, despite a deterioration of market conditions, we were able to improve our profitability and reduce our net debt level. Looking ahead, we continue to remain cautious considering the global economic uncertainty for 2014. However, we believe that Aperam is now well positioned to benefit from any market recovery. We are also extending the Leadership Journey® to further improve our operational performance.”

Highlights
•Health and Safety frequency rate2 of 1.3x in 2013 compared to 1.3x in 2012
•Shipments of 1,728 thousand tonnes in full year 2013, a 3% increase compared to shipments of 1,683 thousand tonnes in full year 2012
•EBITDA3 of USD 292 million in full year 2013, compared to EBITDA of USD 2174 million in full year 2012
•Basic loss per share of USD 1.28 in 2013
•Cash flow from operations amounted to USD 204 million in 2013
•Net debt5of USD 690 million on December 31, 2013, representing a gearing of 23% compared to a net debt of USD 816 million on December 31, 2012

Prospects
•EBITDA in Q1 2014 is expected to increase compared to EBITDA in Q4 2013
•Net debt to remain under control in Q1 2014

2014-2015 Plan
•Expansion of Leadership Journey® to USD 475 million by 2015, targeting more than USD 100 million of gains over next 2 years

Financial Highlights (on the basis of IFRS)
(USDm) unless otherwise stated 12M ‘13 12M ‘124 Q4 ‘13 Q3 ‘13 Q4 ‘124
Sales 5,120 5,261 1,281 1,204 1,294
EBITDA 292 217 84 62 43
Operating (loss) / income (11) (103) 3 (8) (45)
Net loss (100) (111) (42) (19) (53)
Steel shipments (000t) 1,728 1,683 441 436 407
EBITDA/tonne (USD) 169 129 190 142 106
Basic loss per share (USD) (1.28) (1.43) (0.53) (0.24) (0.69)

Health & Safety results analysis

Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate2, was 1.0x in the fourth quarter of 2013 compared to 1.9x in the third quarter of 2013.

Financial results analysis

Sales in the fourth quarter of 2013 increased by 6% at USD 1,281 million compared to USD 1,204 million in the third quarter of 2013. Shipments in the fourth quarter of 2013 increased by 1% at 441 thousand tonnes compared to 436 thousand tonnes in the third quarter of 2013.

EBITDA was USD 84 million in the fourth quarter of 2013 compared to EBITDA of USD 62 million in the third quarter of 2013. This increase was primarily driven by better activity in Europe and the contribution of the Leadership Journey®6 and the Top Line strategy. The Leadership Journey®6 has continued to progress over the quarter and has contributed a total amount of USD 369 million to EBITDA since the beginning of 2011.

Depreciation and impairment expense in the fourth quarter of 2013 was USD 81 million.

Aperam had an operating income in the fourth quarter of USD 3 million compared to an operating loss of USD 8 million in the previous quarter.

Net interest expense and other financing costs in the fourth quarter of 2013 were USD 32 million, primarily related to financing costs of USD 23 million. Realized and unrealized foreign exchange and derivative losses were USD 3 million in the fourth quarter of 2013.

The Company recorded a net loss of USD 42 million, inclusive of an income tax expense of USD 9 million, in the fourth quarter of 2013.

Cash flows from operations in the fourth quarter were positive at USD 143 million, with a working capital decrease of USD 45 million. In addition, the company managed to offset over the quarter the negative impact of the TSR change recorded in the first quarter of 2013 CAPEX in the fourth quarter was USD 30 million.

As of December 31, 2013, shareholders’ equity was USD 2,958 million and net financial debt5 was USD 690 million (gross financial debt as of December 31, 2013 was USD 982 million and cash, cash equivalents and restricted cash were USD 292 million).

The Company had liquidity of USD 797 million as of December 31, 2013, consisting of cash and cash equivalents of USD 291 million and undrawn credit lines7 8 of USD 506 million.

Operating segment results analysis

Stainless & Electrical Steel

The Stainless & Electrical Steel segment had sales of USD 997 million in the fourth quarter of 2013. This represents an increase of 9% compared to sales of USD 915 million in the third quarter of 2013. Shipments during the fourth quarter were 425 thousand tonnes. This is an increase of 4% compared to shipments of 408 thousand tonnes in the previous quarter. In Europe, shipments were 261 thousand tonnes and in South America shipments were 164 thousand tonnes (compared to 226 thousand tonnes in Europe and 182 thousand tonnes in South America in Q3 2013). Although the volumes declined in Brazil due to the seasonal impact, the overall volumes were higher over the quarter mainly as a result of higher activity in Europe. Overall, average selling prices for the Stainless & Electrical Steel segment were higher for the quarter.

The segment had EBITDA of USD 58 million in the fourth quarter of 2013 compared to USD 36 million in the third quarter of 2013. EBITDA from South America increased in the fourth quarter of 2013 to USD 37 million from USD 34 million in the third quarter of 2013. Over the quarter, a USD 9 million of capital gain was recognized in relation to the sale of some real estates in Brazil. Excluding this one-off item, the EBITDA in South America decreased as a result of the seasonal effect partially offset by the impacts of the Leadership Journey® and the Top Line strategy. EBITDA from Europe significantly increased from USD 2 million in the third quarter of 2013 to USD 21 million in the fourth quarter of 2013. The increase in EBITDA in Europe was primarily driven by higher volumes due the demand improvement in the fourth quarter and the continuing progress of the Leadership Journey®.

Depreciation and amortization expense was USD 63 million and impairment expense was USD 2 million in the fourth quarter of 2013.

The Stainless & Electrical Steel segment had an operating loss of USD 7 million during the fourth quarter of 2013 compared to an operating loss of USD 21 million in the third quarter of 2013.

Services & Solutions

The Services & Solutions segment had a 4% increase in sales during the quarter, from USD 516 million in the third quarter of 2013 to USD 535 million in the fourth quarter of 2013. In the fourth quarter of 2013, shipments were 169 thousand tonnes compared to 165 thousand tonnes in the previous quarter. The Services & Solutions segment had lower average selling prices during the period.

The segment had positive EBITDA in the fourth quarter of 2013 of USD 5 million compared to positive EBITDA of USD 1 million in the third quarter of 2013. Overall, the increase of EBITDA was mainly driven by higher volumes and the good progress on the Leadership Journey®.

Depreciation and amortization expense was USD 6 million and impairment expense was USD 5 million in the fourth quarter of 2013.

The Services & Solutions segment had an operating loss of USD 6 million in the fourth quarter of 2013 compared to an operating loss of USD 5 million in the third quarter of 2013.

Alloys & Specialties

The Alloys & Specialties segment had sales in the fourth quarter of 2013 of USD 160 million, representing an increase of 8% compared to USD 148 million in the third quarter of 2013. Shipments were higher in the fourth quarter of 2013 at 9 thousand tonnes compared to 8 thousand tonnes in the third quarter of 2013. Average selling prices decreased over the quarter.

The Alloys & Specialties segment achieved EBITDA of USD 17 million in the fourth quarter of 2013 compared to USD 16 million in the third quarter of 2013. The EBITDA improvement is mainly due to higher volumes and the completion of the investment launched in 2011 as part of the Leadership Journey®.

Depreciation and amortization expense in the fourth quarter of 2013 was USD 2 million.

The Alloys & Specialties segment had an operating income of USD 15 million in the fourth quarter of 2013 compared to an operating income of USD 14 million in the third quarter of 2013.

Recent developments
•On November 6, 2013 Aperam announced the appointment of Mr. Sandeep Jalan as the Company's new Chief Financial Officer effective January 15, 2014 following the resignation of Mr. Julien Onillon to realize a personal project. Mr. Jalan has over twenty years of experience in finance and was previously the CFO of ArcelorMittal Long Carbon Europe, responsible for finance and strategy.
•On December 23, 2013 Aperam announced its financial calendar for 2014. The financial calendar is available on the Company’s web site at the following link:

New developments
•During its meeting on February 6, 2014, Aperam’s Board of Directors decided to submit to the shareholders’ vote, at the Company’s next annual general meeting scheduled on May 8, 2014, a proposal to continue paying no dividend in 2014 in order to support the previously announced net debt reduction program.
•On February 6, 2014, Aperam announces that in order to continuously enhance its costs competitiveness, the company will expand the Leadership Journey® to a new target of USD 475 million by 2015. This includes the previously announced target of USD 425 m by the end of 2014
•On February 6, 2014, Aperam announces that it obtained a new in-principle refinancing commitment to extend Tranche B portion of USD 600 million Borrowing Base Facility from March 2015 until March 2016.

reactie XEA.nl
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tijd 09.13
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