Luxembourg, July 27, 2016
Highlights |
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Aperam (referred to as "Aperam" or the "Company")
(Amsterdam, Luxembourg, Paris: APAM and NYRS: APEMY), announced
today results for the three month ending June 30,
2016
Timoteo Di Maulo, CEO of Aperam, commented:
"Despite headwinds from the current market conditions, Aperam
continues to improve its operational performance, delivering a
record high of operating cash flow generation over a second
quarter.
Looking ahead, we remain confident in our capacity to deliver solid
operational results and cash flow with the contribution of our
Leadership Journey®6 and Top Line strategy." |
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Net debt5 of USD 280 million as of June
30, 2016, representing a gearing of 11% compared to a net debt of
USD 338 million as of March 31, 2016
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Prospects |
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Financial Highlights
(on the basis of IFRS)
(USDm)
unless otherwise stated |
Q2 16 |
Q1 16 |
Q2 15 |
H1
2016 |
H1
2015 |
Sales |
1,121 |
1,076 |
1,264 |
2,197 |
2,522 |
EBITDA |
123 |
112 |
155 |
235 |
288 |
Operating income |
80 |
73 |
109 |
153 |
195 |
Net income |
53 |
49 |
66 |
102 |
108 |
Free cash flow before dividend4 |
87 |
6 |
56 |
93 |
102 |
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Steel shipments (000t) |
520 |
483 |
486 |
1,003 |
955 |
EBITDA/tonne (USD) |
237 |
232 |
319 |
234 |
302 |
Basic earnings per share (USD) |
0.68 |
0.63 |
0.85 |
1.31 |
1.39 |
Diluted earnings per share (USD) |
0.52 |
0.57 |
0.66 |
1.09 |
1.30 |
Health & Safety
results
Health and Safety
performance based on Aperam personnel figures and contractors' lost
time injury frequency rate2, was 2.1 in the second quarter of 2016
compared to 1.1 in the first quarter of 2016.
Financial results
analysis for the three months period ending June 30, 2016
Sales in the second
quarter of 2016 increased by 4% to USD 1,121 million compared to
USD 1,076 million in the first quarter of 2016. Shipments in the
second quarter of 2016 increased by 8% at 520 thousand tonnes
compared to 483 thousand tonnes in the first quarter of 2016.
EBITDA continued to
improve over the quarter from USD 112 million in the first quarter
of 2016 to USD 123 million in the second quarter of 2016. The
Leadership Journey®6 has continued to progress over the quarter and
has contributed a total amount of USD 497 million to EBITDA since
the beginning of 2011.
Depreciation and
amortisation expense in the second quarter of 2016 was USD 43
million.
Aperam had an operating
income in the second quarter of 2016 of USD 80 million compared to
an operating income of USD 73 million in the previous quarter.
Net interest expense and
other financing costs in the second quarter of 2016 were USD 13
million, primarily related to financing costs of USD 4 million.
Realised and unrealised foreign exchange and derivative gains were
USD 3 million in the second quarter of 2016.
The Company recorded a
net income of USD 53 million, inclusive of an income tax expense of
USD 17 million, in the second quarter of 2016.
Cash flows from
operations in the second quarter of 2016 were positive at USD 112
million, with a working capital decrease of USD 18 million. CAPEX
in the second quarter was USD 25 million.
Free cash flow before
dividend4 in the second quarter of 2016 amounted to USD 87
million.
As of June 30, 2016,
shareholders' equity was USD 2,466 million and net financial debt5
was USD 280 million (gross financial debt as of June 30, 2016 was
USD 472 million and cash and cash equivalents were USD 192
million).
The Company had
liquidity of USD 647 million as of June 30, 2016, consisting of
cash and cash equivalents of USD 192 million and undrawn credit
lines7 of USD 456 million (borrowing base facility of USD 400
million and EIB financing of EUR 50 million described below).
Operating segment
results analysis
Stainless & Electrical Steel
The Stainless &
Electrical Steel segment had sales of USD 932 million in the second
quarter of 2016. This represents an increase of 6% compared to
sales of USD 876 million in the first quarter of 2016. Shipments
during the second quarter were 516 thousand tonnes. This is an
increase of 9% compared to shipments of 474 thousand tonnes in the
previous quarter. The volume increase was mainly due to the
traditional seasonal recovery in South America. Overall, average
selling prices for the Stainless & Electrical Steel segment
slightly decreased compared to the previous quarter.
The segment had EBITDA
of USD 101 million in the second quarter of 2016 compared to USD 90
million in the first quarter of 2016. The challenging environment,
especially in Brazil, was more than compensated by volume recovery
in South America as well as the good contribution of the Top Line
strategy.
Depreciation and
amortisation expense was USD 37 million in the second quarter of
2016.
The Stainless &
Electrical Steel segment had an operating income of USD 64 million
during the second quarter of 2016 compared to an operating income
of USD 56 million in the first quarter of 2016.
Services & Solutions
The Services &
Solutions segment had a 4% increase in sales during the quarter,
from USD 500 million in the first quarter of 2016 to USD 519
million in the second quarter of 2016. In the second quarter of
2016, shipments were 213 thousand tonnes compared to 210 thousand
tonnes in the previous quarter. The Services & Solutions
segment had higher average selling prices during the period
compared to the previous period.
The segment had EBITDA
in the second quarter of 2016 of USD 27 million compared to EBITDA
of USD 19 million in the first quarter of 2016. Overall, the
increase in EBITDA was mainly driven by good volumes and
improvement of selling prices.
Depreciation and
amortisation expense was USD 4 million in the second quarter of
2016.
The Services &
Solutions segment had an operating income of USD 23 million in the
second quarter of 2016 compared to an operating income of USD 16
million in the first quarter of 2016.
Alloys
& Specialties
The Alloys &
Specialties segment had sales of USD 107 million in the second
quarter of 2016, representing a decrease of 2% compared to USD 109
million in the first quarter of 2016. Shipments were lower in the
second quarter of 2016 at 7 thousand tonnes compared to 8 thousand
tonnes in the first quarter of 2016. Average selling prices
increased over the quarter due to mix.
The Alloys &
Specialties segment achieved EBITDA of USD 7 million in the second
quarter of 2016 compared to USD 6 million in the first quarter of
2016.
Depreciation and
amortisation expense in the second quarter of 2016 was USD 2
million.
The Alloys &
Specialties segment had an operating income of USD 5 million in the
second quarter of 2016 compared to an operating income of USD 5
million in the first quarter of 2016.
Recent
developments
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On June 27, 2016, Aperam
and the European Investment Bank announced the signature of a
financing contract of an amount of EUR 50 million for the purpose
of financing a research and development programme over the period
2016-2019 as well as the upgrade of two plants located in cohesion
regions (Isbergues - Hauts-de-France and Châtelet - Hainaut).
New
developments
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On July 27, 2016, Aperam
announced a change to its dividend calendar for 2016 with the
payment date of the 3rd quarterly payment to take place on
September 9, 2016 instead of September 12, 2016 (the other dates
remaining identical to the detailed dividend calendar announced on
February 10, 2016). This change follows a recommendation of the
Dutch Advisory Committee Securities Industry to avoid corporate
transactions close to the migration date of the securities
settlement system to a harmonised European system.
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On July 27, 2016, Aperam
published its Half-Year Report for the six month period ended June
30, 2016. The report is available in the Luxembourg Stock
Exchange's electronic database OAM on www.bourse.lu and on
www.aperam.com under Investors & shareholders, Aperam Financial
Reports.
Investor conference
call
Aperam management will
host a conference call for members of the investment community to
discuss the second quarter 2016 financial performance at the
following time:
Date |
New York |
London |
Luxembourg |
Wednesday,
July 27, 2016 |
12:30
pm |
5:30
pm |
6:30
pm |
The dial-in numbers for the call are:
France (+33(0)1 76 77 22 24); USA (+1212 444 0412); and
international (+44(0)20 3427 1906). The participant access code is:
5905084#.
A replay of the conference call will be available until August 2nd,
2016: France (+33 (0)1 74 20 28 00); USA (+1 347 366 9565) and
international (+44 (0)20 3427 0598). The participant access code is
5905084#.
Contacts
Corporate Communications / Laurent
Beauloye: +352 27 36 27 27
Investor Relations / Romain Grandsart: +352 27 36 27 36
About Aperam
Aperam is a global player in stainless,
electrical and specialty steel, with customers in over 40
countries. The business is organised in three primary operating
segments: Stainless & Electrical Steel, Services &
Solutions and Alloys & Specialties.
Aperam has 2.5 million
tonnes of flat Stainless and Electrical steel capacity in Brazil
and Europe and is a leader in high value specialty products. Aperam
has a highly integrated distribution, processing and services
network and a unique capability to produce stainless and specialty
from low cost biomass (charcoal). Its industrial network is
concentrated in six production facilities located in Brazil,
Belgium and France.
In 2015, Aperam had
sales of USD 4.7 billion and shipments of 1.89 million tonnes.
For further information,
please refer to our website at www.aperam.com
Forward-looking statements
This document may
contain forward-looking information and statements about Aperam and
its subsidiaries. These statements include financial projections
and estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. Forward-looking statements may be identified by the
words "believe," "expect," "anticipate," "target" or similar
expressions. Although Aperam's management believes that the
expectations reflected in such forward-looking statements are
reasonable, investors and holders of Aperam's securities are
cautioned that forward-looking information and statements are
subject to numerous risks and uncertainties, many of which are
difficult to predict and generally beyond the control of Aperam,
that could cause actual results and developments to differ
materially and adversely from those expressed in, or implied or
projected by, the forward-looking information and statements. These
risks and uncertainties include those discussed or identified in
Aperam's filings with the Luxembourg Stock Market Authority for the
Financial Markets (Commission de Surveillance du Secteur
Financier). Aperam undertakes no obligation to publicly update its
forward-looking statements or information, whether as a result of
new information, future events, or otherwise.
APERAM CONDENSED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in million of U.S. dollars) |
June 30,
2016 |
March 31,
2016 |
June 30,
2015 |
Non current assets |
2,780 |
2,771 |
2,894 |
Intangible assets |
596 |
587 |
619 |
Property, plant and equipments (incl. Biological
assets) |
1,733 |
1,729 |
1,774 |
Investments & Other |
451 |
455 |
501 |
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Current assets & working
capital |
884 |
815 |
842 |
Inventories, trade receivables and trade
payables |
591 |
595 |
650 |
Other assets |
101 |
90 |
120 |
Cash and cash equivalents |
192 |
130 |
72 |
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Shareholders' equity |
2,466 |
2,411 |
2,449 |
Group share |
2,461 |
2,406 |
2,445 |
Non-controlling interest |
5 |
5 |
4 |
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Non current liabilities |
898 |
900 |
924 |
Interest bearing liabilities |
458 |
454 |
446 |
Deferred employee benefits |
184 |
191 |
193 |
Provisions and other |
256 |
255 |
285 |
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Current liabilities (excluding
trade payables) |
300 |
275 |
363 |
Interest bearing liabilities |
14 |
14 |
80 |
Other |
286 |
261 |
283 |
APERAM CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS
(in million of U.S. dollars) |
Three Months Ended |
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Six Months Ended |
June 30, 2016 |
March 31, 2016 |
June 30,
2015 |
|
June 30, 2016 |
June 30, 2015 |
Sales |
1,121 |
1,076 |
1,264 |
|
2,197 |
2,522 |
EBITDA |
123 |
112 |
155 |
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235 |
288 |
EBITDA margin (%) |
11.0% |
10.4% |
12.3% |
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10.7% |
11.4% |
Depreciation & amortisation |
(43) |
(39) |
(46) |
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(82) |
(93) |
Operating income |
80 |
73 |
109 |
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153 |
195 |
Loss from other investments and associates |
- |
- |
(6) |
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- |
(6) |
Net interest expense and other net financing
costs |
(13) |
(9) |
(15) |
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(22) |
(50) |
Foreign exchange and derivative gains /
(losses) |
3 |
(3) |
2 |
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- |
5 |
Income before taxes and
non-controlling interests |
70 |
61 |
90 |
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131 |
144 |
Income tax expense |
(17) |
(12) |
(23) |
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(29) |
(35) |
Income before non-controlling
interests |
53 |
49 |
67 |
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102 |
109 |
Non-controlling interests |
- |
- |
1 |
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- |
1 |
Net income |
53 |
49 |
66 |
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102 |
108 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in million of U.S. dollars) |
Three Months Ended |
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Six Months Ended |
June 30, 2016 |
March 31, 2016 |
June 30,
2015 |
|
June 30, 2016 |
June 30, 2015 |
Net income |
53 |
49 |
66 |
|
102 |
108 |
Non-controlling interests |
- |
- |
1 |
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- |
1 |
Depreciation and amortisation |
43 |
39 |
46 |
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82 |
93 |
Change in working capital |
18 |
(40) |
(24) |
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(22) |
(67) |
Other |
(2) |
(9) |
(11) |
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(11) |
23 |
Net cash provided by operating
activities |
112 |
39 |
78 |
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151 |
158 |
Purchase of PPE, intangible and biological assets
(CAPEX) |
(25) |
(33) |
(24) |
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(58) |
(58) |
Other investing activities (net) |
- |
- |
3 |
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- |
2 |
Net cash used in investing
activities |
(25) |
(33) |
(21) |
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(58) |
(56) |
Payments to banks and long term debt |
(3) |
(4) |
(265) |
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(7) |
(213) |
Dividends paid |
(24) |
(24) |
- |
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(48) |
- |
Other financing activities (net) |
- |
- |
(1) |
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(1) |
(1) |
Net cash used in financing
activities |
(28) |
(28) |
(266) |
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(56) |
(214) |
Effect of exchange rate changes on cash |
3 |
4 |
5 |
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7 |
(13) |
Change in cash and cash
equivalent |
62 |
(18) |
(204) |
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44 |
(125) |
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Free cash flow before
dividend4 |
87 |
6 |
56 |
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93 |
102 |
Appendix 1a - Health
& Safety statistics
Health & Safety Statistics |
Three Months Ended |
June 30, 2016 |
March 31, 2016 |
June 30,
2015 |
Frequency
Rate |
2.1 |
1.1 |
0.8 |
Lost time injury frequency rate equals
lost time injuries per 1,000,000 worked hours, based on own
personnel and contractors.
Appendix 1b - Key
operational and financial information
Quarter Ended
June 30, 2016 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
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Steel Shipment (000t) |
516 |
213 |
7 |
(216) |
520 |
Steel selling price (USD/t) |
1,760 |
2,317 |
13,653 |
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1,931 |
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Financial information |
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Sales (USDm) |
932 |
519 |
107 |
(437) |
1,121 |
EBITDA (USDm) |
101 |
27 |
7 |
(12) |
123 |
Depreciation & amortisation (USDm) |
37 |
4 |
2 |
- |
43 |
Operating income / (loss) (USDm) |
64 |
23 |
5 |
(12) |
80 |
Quarter Ended
March 31, 2016 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
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Steel Shipment (000t) |
474 |
210 |
8 |
(209) |
483 |
Steel selling price (USD/t) |
1,794 |
2,266 |
12,828 |
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2,150 |
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Financial information |
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Sales (USDm) |
876 |
500 |
109 |
(409) |
1,076 |
EBITDA (USDm) |
90 |
19 |
6 |
(3) |
112 |
Depreciation & amortisation (USDm) |
34 |
3 |
1 |
1 |
39 |
Operating income / (loss) (USDm) |
56 |
16 |
5 |
(4) |
73 |
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1 The financial
information in this press release and Appendix 1 has been prepared
in accordance with the measurement and recognition criteria of
International Financial Reporting Standards ("IFRS") as adopted in
the European Union. While the interim financial information
included in this announcement has been prepared in accordance with
IFRS applicable to interim periods, this announcement does not
contain sufficient information to constitute an interim financial
report as defined in International Accounting Standard 34, "Interim
Financial Reporting". Unless otherwise noted the numbers and
information in the press release have not been audited. The
financial information and certain other information presented in a
number of tables in this press release have been rounded to the
nearest whole number or the nearest decimal. Therefore, the sum of
the numbers in a column may not conform exactly to the total figure
given for that column. In addition, certain percentages presented
in the tables in this press release reflect calculations based upon
the underlying information prior to rounding and, accordingly, may
not conform exactly to the percentages that would be derived if the
relevant calculations were based upon the rounded
numbers.
2 Lost time injury frequency rate equals lost time injuries per
1,000,000 worked hours, based on own personnel and
contractors.
3 EBITDA is defined as operating income plus depreciation and
impairment expenses.
4 Free cash flow before dividend is defined as net cash provided by
operating activities less net cash used in investing
activities.
5 Net debt refers to long-term debt, plus short-term debt, less
cash and cash equivalents (including short-term investments) and
restricted cash.
6 The Leadership Journey® is an initiative launched on December 16,
2010, and subsequently accelerated and increased, to target
management gains and profit
enhancement. Aperam targets a contribution to EBITDA of a total
amount of USD 475 million by end of 2015 and of USD 575 million by
end of 2017, since the beginning of 2011.
7 Subject to eligible collateral available.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Aperam via Globenewswire
HUG#2031134
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