Acerinox obtains profits of 158 million euros in the first three quarters

Profits, after taxes and minority interests, are 3.5 times higher than those obtained for the same period of the previous year: 45 million euros Bernardo Velázquez, Chief Executive Officer, assures that “in the third quarter the trend has changed which is what we anticipated in the presentation of results in July.”

Acerinox has obtained profits of 158 million euros, after taxes and minority interests, in the first nine months of the year, increasing the profits obtained in the first three quarters of the previous year by 3.5, which amounted to 45 million euros. This is, therefore, the best result at the end of September for the past decade.

During the reporting period, the Group’s turnover stands at 3,511 million euros, increasing by 20% compared to the 2,914 million registered between January and September of last year.

The EBITDA generated in these nine months, totalling 370 million euros, increases by 66% compared to the first three quarters in 2016.

In the third quarter of 2017, compared to the previous year, there was also a 6% increase in net sales. Despite this, profits stand at 7 million euros, compared to the 36 of the third quarter of the previous year, due to the fall in price of raw materials experienced in recent months. This situation was anticipated by Acerinox during the presentation of results in July.

Prices, on the other hand, are improving for the fourth quarter in the main markets: Europe and the United States. In relation to the latter, in September NAS announced an 80 dollar increase per tonne. Demand also increases in the sectors with higher consumption, therefore the Chief Executive Officer, Bernardo Velázquez, is optimistic for the fourth quarter and considers that “in the third quarter the trend has changed which is what we anticipated in the presentation of results in July.”

 

Investments

On Friday 27th, the Governor of Kentucky, Matt Bevin, inaugurated the new BA bright annealing line and the cold-rolling mill in the North American Stainless (USA) plant in which Acerinox has invested over 150 million dollars.

These new investments result in an increase of almost 10% in the plant’s production capacity, an improvement in manufacturing costs and an increase in competitiveness.

Due to this investment, NAS begins to manufacture bright-annealed stainless steel, a product with high annual consumption in the United States – especially in the food and electrical appliances industry – and which to a large extent must be imported: a business opportunity that the Group wanted to take advantage of becoming the main producer of this product in the United States.