ACERINOX GROUP REGISTERS BY SEPTEMBER A PROFIT OF 424 MILLION €, INCREASING BY 56% THE FIGURE ACHIEVED IN THE PREVIOUS YEAR
The third quarter result after taxes and minorities is positive, 12.8 million €, despite the demand fall, and after having carried out a provision for adjusting inventories to net realizable values for an amount of 115 million €
After an excellent first quarter, the stainless steel market has undergone a strong fall of demand in the third quarter 2007, due to the price nickel plunge. In August nickel price was quoted at less than half the price reached in May.
The uncertainty about the price correction of this metal has led the stockists to sell off inventories and delay the orders so as to benefit from a possible price fall owing to the alloy surcharges decrease.
As a result of this situation, the base prices of the last months have gone from the highest levels to the lowest of the last decade.
In the last weeks demand has recovered, which will allow to increase production and deliveries at the end of the year.
In this context, ACERINOX Group has tailored its production to the situation of demand, which has meant a melting production 40% lower than the output of the second quarter and a cold rolling production, which has decreased by 22% with regard to the output of the same period. In the whole year the melting production, 1,703,922 Mt, is 11.3% lower than the output achieved in the first nine months of 2006. The cold rolling production, 1,099,741 Mt, decreases by 7.4% with regard with the mentioned period.
The Net Sales of the Consolidated Group, 5,458.2 million euros, increases by 39% with regard with 2006 like period. Results after Taxes and Minorities achieved in the period, 424.3 million euros is 56.4% higher than the figure of 2006.
The already mentioned market situation has made it convenient, for prudent reasons, to carry out a provision for adjusting inventories to net realizable values for an amount of 115 million euros.
The whole effect of this market situation and the carried out provision, has resulted in a quarterly result after taxes and minorities of 12.8 million euros.
The contribution to the result after taxes and minorities of the Consolidated Group, is still leaded by NORTH AMERICAN STAINLESS (NAS) with 44% contribution, followed by the parent company, ACERINOX, S.A. with 32.2%.