Results as of 30th September 2011

- Acerinox Group reports for the first nine months of year 2011 results after taxes and minorities of 103 million euros, 5.4% higher than the figure achieved for the same period in 2010

- Results before taxes for the third quarter was 5.5 million euros and results after taxes and minorities was 1 million euros. This period has been heavily impacted by the sharp fall in the raw material prices and the consumption slow down due to the world financial uncertainty

- The inventories has been adjusted to net realizable value for 17 million euros

- The policy of working capital reduction has allowed us to reduce the debt in the third quarter by 212 million euros. Moreover, also in the third quarter Acerinox has increased the credit lines by 150 million euros. This allows us to face the financial uncertainty with confidence

- The Phase I of investments in Bahru Stainless started up in November accordingly to the forecasted schedule and budget

- The forecasted market recovery has not occurred, and is not expected until the first quarter 2012



Raw Materials

The Nickel price has experienced a correction in August and September of 27% because of the international financial uncertainties, which has affected the expected recovery of demand from the month of September. 



The alloy surcharges continue to decrease from the high values calculated in Europe for March, with a drop of 22%. In the United States the highest alloy surcharges were applied in April and as of September the accumulated reduction is 16%.


· Europe

The expected recovery of consumption in Europe has not taken place despite the low levels of inventories. The uncertainty of the financial markets, the imports from other countries and the downward trend of the alloy surcharges have affected the volume of orders for the third and fourth quarter. 


· America

The better situation of the North American market, our largest market, has maintained the rises of base price of the second quarter.



· Asia

The Asian market is still the most active, although, as discussed in June, the Nickel weakness and the existing high capacity in this market have not allowed to increase prices.







The Group production has dropped to match to the lower entry of orders and to adhere the policy of inventory reduction. Year to date production is 4.5% lower than in the same period of 2010.





In the third quarter, the net sales of 1,061 million euros, is 7.5% lower than the previous quarter. Thus, the accumulated net sales as of September are 3,622 million euros which is 8.2% higher than in the previous year. 



The North American market is the largest market of the Acerinox Group, representing 45% of the sales.




The contribution of the Spanish market to the Group results continues decreasing. Net Sales in the Spanish market are only 9.5%

EBITDA for the first nine months of 2011 of 315 million euros, is 10.1% higher than in the previous year, despite the third quarter being the worst of the year, of 58 million euros (74 million euros in 2010) .

The accumulated EBIT amounts to 205 million euros, 17.2% higher than the figure achieved for the same period in 2010 (175 million euros). EBIT in the third quarter is 22 million euros (37 million euros in 2010).

Condensed profit & loss account. Acerinox Consolidated Group




The reduction of the alloy surcharges has led the Group to carry out an adjustment of inventories to net realizable value in the amount of 16.7 million euros.

Once the previous adjustments have been made, the income before taxes achieved by the Group totals 162 million euros, improving by 12.9% on the figure obtained in the first nine months of the year before.

Net income of this period total 103 million euros, which is 5.4% higher than the figure of 2010 like period.

Condensed balance sheet. Acerinox Consolidated Group







The Group working capital has decreased by 14 million euros in the first nine months of the year. The third quarter has had a significant reduction of 210 million euros, mainly due to a significant reduction of inventories.

The debt has been reduced by 212 million euros in the quarter. The net financial debt as of 30th September amounts to 1,074 million euros 





The cash flow generated by the Group for the first nine months of the year totals 174 million euros. 270 million euros of cash flow achieved in the third quarter more than offset the negative flow from the first half of the year.

The new factory in Malaysia accounts for the majority of the total accumulated paid investment of 129 million euros. 





The financial strength of Acerinox Group has allowed an increased in the third quarter of the lines in force by 150 million euros up to 2,182 million euros. This increase contrasts with the current international credit restrictions. This, joint with the reduction in debt of 212 million euros allow us to face with guarantees the financial turbulences.




The Group liquidity is guaranteed for the next years thanks to the fact that 77% of the debt is long term. Nevertheless, Acerinox Group following its traditional policy continues exploring efficient financial alternatives.

As of 30th September Acerinox Group complies with all of its debt covenants.

Investor’s Day

On the 8th November the company will hold the “Investor’s Day” in London (UK). The Group senior management plans these events annually, alternating with the Group factories and international financial places. In 2010 it was held in Kentucky (US).

Bahru Stainless (Malaysia)

The cold rolling mill is finalizing the installation of the equipment just before the final start up.

Bahru Stainless has a current staff level of 209 people.




Roldán, S.A.

The factory of Ponferrada (Spain) is back to normal after the fire occurred at its hot rolling facilities on November, 20th 2010. The new equipments are working since April. The extra-costs suffered as a consequence of this fire has been covered by the insurance company.

Commercial network

In addition to the traditional activity of the Group in Turkey through Betinoks a new subsidiary 100% owned by the Group is to be added in this area due to the increasing importance of this market. Its commercial activity will also extend to the Middle East.

Likewise, in this period the offices of Indonesia and Vietnam have also begun their activities, within the strategy to enlarge the Acerinox Group commercial network in Asia.

Reorganization project

The Extraordinary Shareholders Meeting held in September supported by wide majority the business reorganization and the creation process of Acerinox Europe.

This new society will start on the 1st December and there is already a date fixed for its first Board of Directors to be held on the 7th December.

The birth of the new ACERINOX EUROPE has been favourably accepted by the specialized analysts and the social agents. Its creation will enhance the Group culture as a whole and will give more operative agility and a more mature organization.


The strength and competitiveness of the Group will finish the year with a good global result, although the market recovery expected for the fourth quarter will be delayed due to the troubled euro zone.

Nevertheless, we are convinced that the geographical diversification of the Group will allow us to offset these local problems with the relative strength of the other markets, our unique competitive advantage in the sector and benefits of the strategy being developed by the Acerinox Group.

Despite the uncertainty and poor visibility, the final demand and inventory levels make us think that the market will start to recover at the beginning of next year.

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