Luxembourg May 4th,
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 period ending March 31,
2016
Timoteo Di Maulo, CEO of Aperam, commented:
"Despite market headwinds, we are pleased to have delivered the
best first quarter net result since the spin-off. This makes us
confident in the ability of Aperam to improve its performance
continuously and capture any opportunity.
Looking ahead, we remain cautious given the economic environment.
However, the first quarter confirmed that Q4 2015 was a trough in
terms of market conditions and we believe that we will further
improve our profitability." |
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Net debt4 of USD 338 million on March
31, 2016, representing a gearing of 14% compared to a net debt of
USD 316 million on December 31, 2015
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Prospects |
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Financial Highlights (on the basis
of IFRS) |
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(USDm)
unless otherwise stated |
Q1 '16 |
Q4 '15 |
Q1 '15 |
Sales |
1,076 |
1,081 |
1,258 |
EBITDA |
112 |
105 |
133 |
Operating income |
73 |
65 |
86 |
Net income |
49 |
33 |
42 |
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Steel shipments (000t) |
483 |
476 |
469 |
EBITDA/tonne (USD) |
232 |
221 |
284 |
Basic earnings per share (USD) |
0.63 |
0.42 |
0.54 |
Diluted earnings per share (USD) |
0.57 |
0.40 |
0.50 |
Health & Safety
results analysis
Health and Safety
performance based on Aperam personnel figures and contractors lost
time injury frequency rate2, was 1.1 in the first quarter of 2016
compared to 0.7 in the fourth quarter of 2015.
Financial results
analysis for the three months period ending March 31, 2016
Sales in the first
quarter of 2016 were stable at USD 1,076 million compared to USD
1,081 million in the fourth quarter of 2015. Shipments in the first
quarter of 2016 increased by 1% at 483 thousand tonnes compared to
476 thousand tonnes in the fourth quarter of 2015.
EBITDA was USD 112
million in the first quarter of 2016 compared to EBITDA of USD 105
million in the fourth quarter of 2015. Despite the traditional
seasonal effect in Brazil, EBITDA increased quarter on quarter
mainly due to solid performance of Stainless & Electrical Steel
Europe and Services & Solutions segments. The Leadership
Journey®5 has continued to progress over the quarter and has
contributed a total amount of USD 487 million to EBITDA since the
beginning of 2011.
Depreciation and
amortization expense in the first quarter of 2016 was USD 39
million.
Aperam had an operating
income in the first quarter of 2016 of USD 73 million compared to
an operating income of USD 65 million in the previous quarter.
Net interest expense and
other financing costs in the first quarter of 2016 were USD 9
million, primarily related to financing costs of USD 4 million and
USD 6 million of non-cash interest expense related to the
amortization of the option premium on convertible bonds. Realized
and unrealized foreign exchange and derivative losses were USD 3
million in the first quarter of 2016.
The Company recorded a
net income of USD 49 million, inclusive of an income tax expense of
USD 12 million, in the first quarter of 2016.
Cash flows from
operations in the first quarter were positive at USD 39 million,
with a working capital increase of USD 40 million. CAPEX in the
first quarter was USD 33 million.
As of March 31, 2016,
shareholders' equity was USD 2,411 million and net financial debt
was USD 338 million (gross financial debt as of March 31, 2016 was
USD 468 million and cash & cash equivalents were USD 130
million).
The Company had
liquidity of USD 530 million as of March 31, 2016, consisting of
cash and cash equivalents of USD 130 million and undrawn credit
lines6 of USD 400 million.
Operating segment
results analysis
Stainless & Electrical Steel
The Stainless &
Electrical Steel segment had sales of USD 876 million in the first
quarter of 2016. This is similar to sales of USD 869 million in the
fourth quarter of 2015. Shipments during the first quarter were 474
thousand tonnes, a 2% increase compared to shipments in the fourth
quarter of 2015 of 465 thousand tonnes. The volume increase was
mainly due to seasonal recovery in Europe. Overall, average selling
prices for the Stainless & Electrical Steel segment were
slightly lower for the quarter mainly due to the raw material price
effects.
The segment had EBITDA
of USD 90 million in the first quarter of 2016 compared to USD 95
million in the fourth quarter of 2015. The seasonal effect in South
America was compensated by the traditional seasonal recovery in
Europe as well as the contribution of the Leadership Journey® and
the Top Line strategy.
Depreciation and
amortization expense was USD 34 million in the first quarter of
2016.
The Stainless &
Electrical Steel segment had an operating income of USD 56 million
during the first quarter of 2016 compared to an operating income of
USD 61 million in the fourth quarter of 2015.
Services & Solutions
The Services &
Solutions segment had a 13% increase in sales during the quarter,
from USD 442 million in the fourth quarter of 2015 to USD 500
million in the first quarter of 2016. In the first quarter of
2016, shipments were 210 thousand tonnes compared to 174 thousand
tonnes in the previous quarter. The Services & Solutions
segment had lower average selling prices during the quarter.
The segment had EBITDA
in the first quarter of 2016 of USD 19 million compared to EBITDA
of USD 8 million in the fourth quarter of 2015. The increase in
EBITDA was mainly driven by seasonal recovery and the contribution
of Top Line strategy.
Depreciation and
amortization expense was USD 3 million in the first quarter of
2016.
The Services &
Solutions segment had an operating income of USD 16 million in the
first quarter of 2016 compared to an operating income of USD 3
million in the fourth quarter of 2015.
Alloys
& Specialties
The Alloys &
Specialties segment had sales in the first quarter of 2016 of USD
109 million, representing a decrease of 16% compared to USD 130
million in the fourth quarter of 2015. Shipments were stable in the
first quarter of 2016 at 8 thousand tonnes compared to 8 thousand
tonnes in the fourth quarter of 2015. Average selling prices
decreased over the quarter.
The Alloys &
Specialties segment achieved EBITDA of USD 6 million in the first
quarter of 2016 compared to USD 8 million in the fourth quarter of
2015. The EBITDA decrease is mainly due to raw material and product
mix effects.
Depreciation and
amortization expense in the first quarter of 2016 was USD 1
million.
The Alloys &
Specialties segment had an operating income of USD 5 million in the
first quarter of 2016 compared to an operating income of USD 7
million in the fourth quarter of 2015.
Recent
developments
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On April 4, 2016, Aperam
announced the publication of the convening notice for its Annual
General Meeting of shareholders to be held on May 4, 2016.
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On April 6, 2016, Aperam
announced the publication of its "made for life" report for 2015,
which constitutes Aperam's sustainability performance report.
New
developments
Investor conference
call
Aperam management will
host a conference call for members of the investment community to
discuss the first quarter 2016 financial performance at the
following time:
Date |
New York |
London |
Luxembourg |
Wednesday,
May 4, 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 25); USA (+1 646 254 3363); and
international (+44(0)20 3427 1911). The participant access code is:
3849347#.
A replay of the conference call will be available until May 10th,
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
3849347#.
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 organized 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) |
March 31,
2016 |
December 31,
2015 |
March 31,
2015 |
Non current assets |
2,771 |
2,642 |
2,856 |
Intangible assets |
587 |
556 |
599 |
Property, plant and equipments (incl. Biological
assets) |
1,729 |
1,652 |
1,737 |
Investments & Other |
455 |
434 |
520 |
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Current assets & working
capital |
815 |
808 |
999 |
Inventories, trade receivables and trade
payables |
595 |
520 |
603 |
Other assets |
90 |
140 |
120 |
Cash and cash equivalents |
130 |
148 |
276 |
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Shareholders' equity |
2,411 |
2,222 |
2,276 |
Group share |
2,406 |
2,217 |
2,272 |
Non-controlling interest |
5 |
5 |
4 |
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Non current liabilities |
900 |
883 |
906 |
Interest bearing liabilities |
454 |
450 |
443 |
Deferred employee benefits |
191 |
184 |
187 |
Provisions and other |
255 |
249 |
276 |
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Current liabilities (excluding
trade payables) |
275 |
345 |
673 |
Interest bearing liabilities |
14 |
14 |
341 |
Other |
261 |
331 |
332 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(in million of U.S. dollars) |
Three Months Ended |
March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
Sales |
1,076 |
1,081 |
1,258 |
EBITDA |
112 |
105 |
133 |
Depreciation & amortization |
39 |
40 |
47 |
Operating income |
73 |
65 |
86 |
Loss from other investments and associates |
- |
(3) |
- |
Net interest expense and other net financing
costs |
(9) |
(12) |
(35) |
Foreign exchange and derivative gains /
(losses) |
(3) |
(5) |
3 |
Income before taxes |
61 |
45 |
54 |
Income expense |
(12) |
(12) |
(12) |
Net income |
49 |
33 |
42 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in million of U.S. dollars) |
Three Months Ended |
March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
Net income |
49 |
33 |
42 |
Depreciation and amortization |
39 |
40 |
47 |
Change in working capital |
(40) |
107 |
(43) |
Other |
(9) |
(11) |
34 |
Net cash provided by operating
activities |
39 |
169 |
80 |
Purchase of PPE, intangible and biological assets
(CAPEX) |
(33) |
(48) |
(34) |
Other investing activities (net) |
- |
3 |
(1) |
Net cash used in investing
activities |
(33) |
(45) |
(35) |
(Payments to) / proceeds from banks and long term
debt |
(4) |
(30) |
52 |
Purchase of treasury stock |
- |
(14) |
- |
Dividends paid |
(24) |
- |
- |
Net cash (used in) / provided by
financing activities |
(28) |
(44) |
52 |
Effect of exchange rate changes on cash |
4 |
- |
(18) |
Change in cash and cash
equivalent |
(18) |
80 |
79 |
Appendix 1a - Health
& Safety statistics
Health & Safety Statistics |
Three Months Ended |
March 31,
2016 |
December 31,
2015 |
March 31,
2015 |
Frequency
Rate |
1.1 |
0.7 |
1.3 |
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
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 & amortization (USDm) |
34 |
3 |
1 |
1 |
39 |
Operating income / (loss) (USDm) |
56 |
16 |
5 |
(4) |
73 |
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Quarter Ended
December 31, 2015 7 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
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Steel Shipment (000t) |
465 |
174 |
8 |
(171) |
476 |
Steel selling price (USD/t) |
1
813 |
2
380 |
16
228 |
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2
185 |
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Financial information |
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Sales (USDm) |
869 |
442 |
130 |
(360) |
1
081 |
EBITDA (USDm) |
95 |
8 |
8 |
(6) |
105 |
Depreciation & amortization (USDm) |
34 |
5 |
1 |
- |
40 |
Operating income / (loss) (USDm) |
61 |
3 |
7 |
(6) |
65 |
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1 The financial
information in this press release and Appendix 1 & 2 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 Net debt refers to long-term debt, plus short-term debt, less
cash and cash equivalents (including short-term investments) and
restricted cash.
5 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.
6 Subject to eligible collateral available.
7 Due to the transfer of the Business Unit "Precision" from the
segment "Services & Solutions" to the segment "Stainless &
Electrical Steel" as from January 1, 2016, segmented figures for
the quarter ended December 31, 2015 have been restated.
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#2010073
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