Acerinox closes 2019 with 364€ million EBITDA

The turnover of the year, 4,754 million euros, is the second highest in the last decade, compared to 5,011 million euros in 2018. The adjusted EBITDA is 402 million euros, which includes 38 million euros of provision for layoffs iin the European plant of Acerinox. Strong cash generation of 231 million euros and a reduced debt to 495 million euros after having raised the dividend by 44%. The results were affected by extraordinary adjustments, with no cash disbursement, which had an impact of 236 million euros on the net result

Acerinox obtained an adjusted EBITDA of 402 million euros and a cash generation of 231 million euros in what was a complex environment . These results allowed the Group to increase shareholder remuneration by 44 %, up to 184 million euros and reduce net debt (which is now at the lowest level of the last 18 years) by 10 % to 495 million euros.

The result after taxes and minorities, a loss of 60 million euros, was affected by non recurring extraordinary items, with no cashflow effect. The impact of these measures supposed an impact of 236 million euros to the net result which includes the layoffs of Acerinox Europe at the EBITDA level, the impairment of the assets of Bahru, the write off of goodwill in Columbus and the tax credits in the Spanish tax group.

VDM aqcuisition

We have received authorization from the competition authorities of Europe and North America and now the only remaining approval is the that of the Taiwanese authorities to enable us to conclude ( or formalize)  the contract to buy VDM metals which we expect in the coming days. 

Outlook

The strength of the North American market with low import levels, leads us to be somewhat optimistic ( or leads the Group to be...). Uncertainty remains in the European market , although activity is improving. We trust that the European authorities will impose further anti - dumping and anti - subsidy measures against Taiwan, China and Indonesia.