“Solid free cash flow despite a seasonal trough and challenging market
Luxembourg, November 6, 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 September 30, 2019
. Health and Safety: LTI frequency rate of 2.2x in Q3 2019 compared to 1.2x in Q2 2019.
. Steel shipments of 418kt in Q3 2019, a 10% decrease compared to steel shipments of 465kt in Q2 2019.
. EBITDA of EUR 79 million in Q3 2019 versus EUR 95 million in Q2 2019 and down from EUR 123 million in Q3 2018.
. Net income of EUR 37 million in Q3 2019, compared to EUR 57 million in Q2 2019.
. Basic earnings per share of EUR 0.47 in Q3 2019, compared to EUR 0.69 in Q2 2019.
. Cash flow from operations amounted to EUR 70 million in Q3 2019, compared to EUR 97 million in Q2 2019.
. Free cash flow before dividend and share buy-back of EUR 45 million in Q3 2019, compared to EUR 72 million in Q2
. Cash returns to shareholders amounted to EUR 35 million in Q3 2019, consisting of dividend.
. Net financial debt of EUR 172 million as of September 30, 2019, compared to EUR 176 million as of June 30, 2019.
. Transforming our footprint with state of the art equipment: CAPEX Guidance 2019 at EUR 150 million. Genk
cold rolling and annealing & pickling line with a total investment of ~EUR 130 million between 2018 and 2020 on
. Leadership Journey®
- (Phase 3 - Transformation Program Target EUR 200 million annualized gains by 2020):
Gains reached EUR 105 million cumulated at end Q3 2019 with good progress on all pillars.
. EBITDA in Q4 2019 is expected to increase slightly compared to EUR 79 million in Q3 2019.
. Net financial debt is expected to decrease in Q4 2019.
Timoteo Di Maulo, CEO of Aperam, commented:
“Despite the normal Q3 seasonal downturn, intensified import pressure and market softness we delivered solid results and
managed to maintain net debt at a low level. This underlines the resilience of our business model.
Looking ahead, we expect demand conditions to remain challenging. Further actions against unfair trade have been initiated this
quarter with aim to restore a level playing field. Meanwhile we continue to strengthen our operations through ramping up EUR 200
million gains through Phase 3 of the Leadership Journey®.”
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