Acerinox mitigates the impact of the pandemic and recognises a profit of EUR 28 million in the third quarter

Since the beginning of the crisis, management has been focused on generating cash flow, increasing liquidity and reducing costs. Adjusted EBITDA, EUR 267 million, was down by just 8% thanks to the incorporation of VDM and the cost reductions undertaken. In a year marked by the pandemic, Acerinox’s turnover totalled EUR 3,451 million between January and September, just 6% lower than that of 2019. In the first three quarters, melting shop production, 1,582,499 tonnes, decreased by 9% compared to the same period of 2019.

Acerinox obtained profit after tax and minority interests of EUR 31 million between January and September 2020, despite the impact of the crisis arising from the Covid pandemic and the impairment of assets of Bahru Stainless amounting to EUR 43 million, which occurred in the second semester.

The Consolidated Group’s melting shop production in these three quarters fell by 9% compared to the same period last year, from 1.7 million tonnes in 2019 to 1.5 million tonnes this year. During the third quarter, the Group’s factories produced 21% more tonnes than in the second quarter, to 538,467. Between July and September, the Group recognised a profit of EUR 28 million.

Between January and September turnover totalled EUR 3,451 million, a decrease of just 6% compared to 2019 in a year clearly marked by the social and economic effects of the pandemic.

In the first nine months, adjusted EBITDA, EUR 267 million, was down by just 8% thanks to the incorporation of VDM and to the cost reductions undertaken.

Acerinox has demonstrated great responsiveness from the start of the pandemic, taking the necessary steps to prioritise the health and safety of its employees.

At the same time, the company's financial management focused on generating cash, increasing liquidity and intensifying the reduction of costs and working capital in all operating units.  

 

Forecast

Visibility is limited. However the reactivation of a number of sectors and our order backlog, lead us to expect fourth quarter EBITDA to be in line with that of the third quarter, despite many uncertainties: evolution of the pandemic, the US elections, Brexit, etc.

The General Shareholder’s Meeting approves a remuneration of EUR 0.50 and the changes to the Board.

 

Acerinox held the 2020 General Shareholders’ Meeting electronically on Thursday 22 October.

The General Shareholders’ Meeting approved a shareholder remuneration of EUR 0.50 per share to each of the shares outstanding, with the first payment of EUR 0.40 as a dividend being made on 2 December 2020, and the second payment of EUR 0.10, as a share premium refund, being made on 3 December 2020.

With regard to the planned changes to the Board of Directors, the General Shareholders’ Meeting approved the appointment of Ms Leticia Iglesias Herraiz and Mr Francisco Javier García Sanz both as Independent Directors.

The shareholders also approved Acerinox’s Statement of Non-Financial Information, which we recommend you readto gain an insight into the company's commitment to sustainability.