Acerinox obtains profits totalling 33 million euros in the first quarter of 2019

The profits represent an increase of 103% with respect to the previous quarter and a fall of 44% in comparison with the same period of the previous year. Chief Executive Officer Bernardo Velázquez states that “stocks in Europe and the United States are at reasonable levels, according to the information available, and we expect imports to remain under control in both regions”.

Acerinox obtained profits totalling 33 million euros in the first quarter of 2019 after taxes and minority interests, a figure which represents an increase of 103% compared with the fourth quarter of 2018 and a fall of 44% in relation to the first quarter of 2018.

The EBITDA for the first quarter totalled 90 million euros, a figure 56% higher than that of the fourth quarter of 2018 and 24% lower than that of the first quarter of the previous year.

The Group’s turnover (1,202 million euros) rose by 6% with respect to the previous quarter and fell by four percentage points in comparison with the same period of 2018.

Between January and March the Group’s steelwork production increased by 22% compared with the last three months of 2018, totalling 627,920 tonnes, 6% less than in the same quarter of the previous year.  

Acerinox achieved these profits in a highly competitive and complex market environment. The definitive safeguard measures approved on 1 February in the EU corrected many the errors of the preliminary measures, imposing annual quotas on countries accounting for more than 5% of imports. Tariffs of 25% will be imposed once this amount is exceeded. This decision will boost the activity of our plant in Europe and South Africa.

The USA continues to be the market displaying the best performance as a result of the strength of its economy and the customs duties, which are having a positive effect on domestic producers.

Chief Executive Officer Bernardo Velázquez explained that “stocks in Europe and the United States are at reasonable levels, according to the information available, and we expect imports to remain under control in both regions, although the market conditions continue to be very competitive”.

As for Rafael Miranda, Chairman of Acerinox, he declared that “we expect the positive trend of results to continue in the second quarter”.

 

A dividend of 0.30 euros will be paid on 5 June and a second payment of 0.20 euros will be made on 5 July, charged to the Share Premium

The General Shareholders’ Meeting of Acerinox S.A. held on 11 April approved an increase in the return to shareholder to 0.50 euros per share, compared with the amount of 0.45 euros paid in recent years.

The approved remuneration represents an increase of 11% compared with the previous year and will be divided into an initial payment charged to unrestricted reserves in the amount of 0.30 euros per share (payable on 5 June 2019) and a second payment charged to the Share Premium account in the amount of 0.20 euros per share (payable on 5 July 2019).

 

Excellence 360º: The promotion and optimization of production, the supply chain, commercial management and purchases of raw materials

 

Acerinox has launched its Excellence 360º Plan, involving the integration of digital transformation tools with the experience acquired during the development of the Excellence Plans. Excellence 360º will implement a planning model that covers the entire value chain, making the Group more flexible in its adaptation to a changing and more productive environment, using as few resources as possible and keeping it one of the most competitive companies in the industry in international terms.

With this Plan it aims to enhance its customer service, increasing the accuracy of deliveries, optimizing the mix of raw material purchases and increasing the reliability of the production processes.

Excellence 360º will boost and optimize the Acerinox Group’s business by increasing the efficiency of the processes on the basis of four pillars: production, the supply chain, commercial management and purchases of raw materials.

The Plan will run for five years and with it Acerinox expects to achieve recurrent savings totalling 125 million euros per year.