Luxembourg, July 26,
2017
Highlights |
|
|
-
Net debt5 of USD 235 million as of June
30, 2017 compared to USD 220 million as of March 31, 2017,
including impact of USD 108 million of cash returns to shareholders
during Q2 2017.
|
|
Aperam (referred to as "Aperam" or the "Company")
(Amsterdam, Brussels, Luxembourg, Paris: APAM and NYRS: APEMY),
announced today results for the three month period ending June 30,
2017
Timoteo Di Maulo, CEO of Aperam, commented:
"Despite some recent production challenges in Europe, Aperam
delivers another strong set of results in the second quarter thanks
to market conditions as well as the Top Line strategy and the
continuous contribution of the Leadership Journey®6.
Looking forward, we are cautious regarding the third quarter in
view of strong seasonality and recent drops in raw material prices.
However we remain confident about the fundamentals of the stainless
steel market and our ability to continuously enhance our
performance." |
|
|
|
Prospects |
|
|
|
|
|
Financial Highlights
(on the basis of financial information prepared under IFRS)
(USDm) unless otherwise stated |
Q2 17 |
Q1 17 |
Q2 16 |
H1 2017 |
H1 2016 |
Sales |
1,268 |
1,276 |
1,121 |
2,544 |
2,197 |
EBITDA |
169 |
171 |
123 |
340 |
235 |
Operating income |
128 |
133 |
80 |
261 |
153 |
Net income |
85 |
93 |
53 |
178 |
102 |
Free cash flow before dividend and share buy-back |
63 |
(15) |
87 |
48 |
93 |
|
Steel shipments (000t) |
478 |
486 |
520 |
964 |
1,003 |
EBITDA/tonne (USD) |
354 |
352 |
237 |
353 |
234 |
Basic earnings per share (USD) |
1.10 |
1.20 |
0.68 |
2.30 |
1.31 |
Diluted earnings per share (USD) |
0.87 |
1.10 |
0.52 |
2.01 |
1.09 |
Health & Safety
results analysis
Health and Safety
performance based on Aperam personnel figures and contractors lost
time injury frequency rate2, was 1.3x in the second quarter of 2017
compared to 1.1x in the first quarter of 2017.
Financial results
analysis for the three months period ending June 30, 2017
Sales for the second
quarter of 2017 were stable at USD 1,268 million compared to USD
1,276 million for the first quarter of 2017. Steel shipments for
the second quarter of 2017 decreased by 2% at 478 thousand tonnes
compared to 486 thousand tonnes for the first quarter of 2017.
EBITDA was USD 169
million for the second quarter of 2017 compared to EBITDA of USD
171 million for the first quarter of 2017. While performance
benefited from positive stock effects in the first quarter and
despite the negative impact from the lower volume in Europe due to
Chatelet technical outage in the second quarter, EBITDA in the
second quarter remains comparable, thanks to market conditions as
well as the contribution of the top line strategy and continuous
Leadership Journey® contribution.
Depreciation and
amortization expense for the second quarter of 2017 was USD 41
million.
Aperam had an operating
income for the second quarter of 2017 of USD 128 million compared
to an operating income of USD 133 million for the previous
quarter.
Net interest expense and
other financing costs for the second quarter of 2017 were USD 13
million, including financing costs of USD 4 million. Realized and
unrealized foreign exchange and derivative losses were USD 5
million for the second quarter of 2017.
The Company recorded a
net income of USD 85 million, inclusive of an income tax expense of
USD 25 million, for the second quarter of 2017.
Cash flows from
operations for the second quarter were positive at USD 100
million, with a working capital increase of USD 55 million. CAPEX7
for the second quarter was USD 39 million.
As of June 30, 2017,
shareholders' equity was USD 2,597 million and net financial debt
was USD 235 million (gross financial debt as of June 30, 2017, was
USD 460 million and cash and cash equivalents were USD 225
million).
During the second
quarter of 2017, the cash returns to shareholders amounted to USD
108 million, consisting of USD 79 million of share buy-back and USD
29 million of dividend. Total cash returned to shareholders during
the first semester 2017 amounted to USD 156 million consisting of
USD 98 million of share buy-back and USD 58 million of
dividend.
The Company had
liquidity of USD 624 million as of June 30, 2017, consisting of
cash and cash equivalents of USD 225 million and undrawn credit
lines8 of USD 399 million.
Operating segment
results analysis
Stainless & Electrical Steel
The Stainless &
Electrical Steel segment had sales of USD 1,052 million for the
second quarter of 2017. This represents a 1% decrease compared to
sales of USD 1,061 million for the first quarter of 2017. Steel
shipments during the second quarter were 467 thousand tonnes,
similar to steel shipments for the first quarter of 2017 of 465
thousand tonnes. The seasonal recovery in South America has
compensated the decrease of shipments in Europe mainly due to the
technical outage at the Chatelet hot strip mill (Belgium) which
occurred during the first quarter. Overall, average selling prices
for the Stainless & Electrical Steel segment slightly decreased
compared to the previous quarter.
The segment had EBITDA
of USD 143 million for the second quarter of 2017 compared to USD
144 million for the first quarter of 2017. The decrease of
profitability in Europe due to technical outage loss of shipments
was compensated by market conditions, some positive seasonal
effects in South America, Top Line strategy and contributions
from the Leadership Journey®.
Depreciation and
amortization expense was USD 35 million for the second quarter of
2017.
The Stainless &
Electrical Steel segment had an operating income of USD 108 million
during the second quarter of 2017 compared to an operating income
of USD 110 million during the first quarter of 2017.
Services & Solutions
The Services &
Solutions segment had a 6% decrease in sales during the second
quarter, from USD 607 million for the first quarter of 2017 to USD
568 million for the second quarter of 2017. In the second quarter
of 2017, steel shipments were 202 thousand tonnes compared to 218
thousand tonnes in the previous quarter. The Services &
Solutions segment had slightly higher average steel selling prices
during the quarter.
The segment had EBITDA
for the second quarter of 2017 of USD 12 million compared to EBITDA
of USD 33 million for the first quarter of 2017. The decrease in
EBITDA was mainly driven by the absence of positive windfall
effects as recorded in first quarter, the impact of supply
disruption following Chatelet technical outage, as well as negative
effects on distribution prices due to some customers'
destocking.
Depreciation and
amortization expense was USD 3 million for the second quarter of
2017.
The Services &
Solutions segment had an operating income of USD 9 million for the
second quarter of 2017 compared to an operating income of USD 31
million for the first quarter of 2017.
Alloys
& Specialties
The Alloys &
Specialties segment had sales for the second quarter of 2017 of USD
134 million, representing an increase of 13% compared to USD 119
million for the first quarter of 2017. Steel shipments decreased
for the second quarter of 2017 to 8 thousand tonnes compared to 9
thousand tonnes for the first quarter of 2017. Average steel
selling prices increased over the quarter.
The Alloys &
Specialties segment achieved EBITDA of USD 13 million for the
second quarter of 2017 compared to USD 12 million for the first
quarter of 2017. EBITDA continues to increase thanks to improving
market environment and the contribution of the Top Line
strategy.
Depreciation and
amortization expense for the second quarter of 2017 was USD 2
million.
The Alloys &
Specialties segment had an operating income of USD 11 million for
the second quarter of 2017 compared to an operating income of USD
10 million for the first quarter of 2017.
Recent
developments
-
On May 18, 2017, Aperam
announced that its long-term corporate credit rating has been
upgraded to Investment Grade by Standard & Poor's, in
recognition of its steady and strong operating performance and
credit metrics. Aperam's long-term corporate credit rating by
Standard & Poor's is now at BBB-, with stable outlook.
-
On June 7, 2017, Aperam
announced its intention to exercise its call option to redeem its
convertible bonds maturing 2020 at their principal amount, together
with accrued but unpaid interest, on or after October 15, 2017,
subject to terms and conditions of the bonds.
-
On June 7, 2017, Aperam
announced having entered into a 5 years unsecured revolving credit
facility of EUR 300 million, replacing its 3 years secured
borrowing base facility of USD 400 million.
New
developments
-
On July 26, 2017, Aperam
published its Half-Year Report for the six month period ended June
30, 2017. 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 2017 financial performance at the
following time:
Date |
New York |
London |
Luxembourg |
Wednesday
July 26, 2017 |
12:30
pm |
5:30
pm |
6:30
pm |
The dial-in numbers for the call are:
France (+33(0)1 76 77 22 20); USA (+1 212 444 0895); and
international (+44(0)20 3427 1913). The participant access code is:
7076200#.
A replay of the conference call will be available until August 1st,
2017: 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
7076200#.
Contacts
Corporate Communications / Laurent
Beauloye: +352 27 36 27 103
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 2016, Aperam had
sales of USD 4.3 billion and steel shipments of 1.92 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,
2017 |
March 31,
2017 |
June 30,
2016 |
Non current assets |
2,841 |
2,811 |
2,780 |
Goodwill and intangible assets |
589 |
575 |
596 |
Property, plant and equipments (incl. Biological
assets) |
1,753 |
1,706 |
1,733 |
Investments & Other |
499 |
530 |
451 |
|
|
|
|
Current assets & working
capital9 |
1,062 |
1,065 |
878 |
Inventories, trade receivables and trade
payables9 |
750 |
682 |
598 |
Prepaid expenses and other current assets9 |
87 |
91 |
88 |
Cash & cash equivalents (C) |
225 |
263 |
192 |
Assets held for sale |
- |
29 |
- |
|
|
|
|
Shareholders' equity |
2,597 |
2,587 |
2,466 |
Group share |
2,593 |
2,582 |
2,461 |
Non-controlling interest |
4 |
5 |
5 |
|
|
|
|
Non current liabilities |
813 |
800 |
898 |
Long-term debt, net of current portion (A) |
281 |
278 |
458 |
Deferred employee benefits |
184 |
174 |
184 |
Provisions and other |
348 |
348 |
256 |
|
|
|
|
Current liabilities (excluding
trade payables)9 |
493 |
489 |
294 |
Short-term debt and current portion of long-term
debt (B) |
179 |
205 |
14 |
Accrued expenses and other current
liabilities9 |
314 |
258 |
280 |
Liabilities held for sale |
- |
26 |
- |
|
|
|
|
Net Debt (D = A+B-C ) |
235 |
220 |
280 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(in million of U.S. dollars) |
Three Months Ended |
|
Six Months Ended |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
|
June 30, 2017 |
June 30, 2016 |
Sales |
1,268 |
1,276 |
1,121 |
|
2,544 |
2,197 |
EBITDA (C = A - B) |
169 |
171 |
123 |
|
340 |
235 |
EBITDA margin % |
13.3% |
13.4% |
11.0% |
|
13.4% |
10.7% |
Depreciation & amortisation (B) |
(41) |
(38) |
(43) |
|
(79) |
(82) |
Operating income (A) |
128 |
133 |
80 |
|
261 |
153 |
Operating margin % |
10.1% |
10.4% |
7.1% |
|
10.3% |
7.0% |
Net interest expense and other net financing
costs |
(13) |
(12) |
(13) |
|
(25) |
(22) |
Foreign exchange and derivative gains /
(losses) |
(5) |
- |
3 |
|
(5) |
- |
Income before taxes |
110 |
121 |
70 |
|
231 |
131 |
Income tax expense |
(25) |
(28) |
(17) |
|
(53) |
(29) |
Effective tax rate % |
22.8% |
22.8% |
24.2% |
|
22.8% |
22.1% |
Net income |
85 |
93 |
53 |
|
178 |
102 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in million of U.S. dollars) |
Three Months Ended |
|
Six Months Ended |
June 30, 2017 |
March 31, 2017 |
June 30,
2016 |
|
June 30, 2017 |
June 30, 2016 |
Net income |
85 |
93 |
53 |
|
178 |
102 |
Depreciation and amortisation |
41 |
38 |
43 |
|
79 |
82 |
Change in working capital9 |
(55) |
(153) |
10 |
|
(208) |
(84) |
Other operating activities (net)9 |
29 |
49 |
6 |
|
78 |
51 |
Net cash provided by operating
activities (A) |
100 |
27 |
112 |
|
127 |
151 |
Purchase of PPE, intangible and biological assets
(CAPEX) |
(39) |
(42) |
(25) |
|
(81) |
(58) |
Other investing activities (net) |
2 |
- |
- |
|
2 |
- |
Net cash used in investing
activities (B) |
(37) |
(42) |
(25) |
|
(79) |
(58) |
(Payments to) / proceeds from banks and long term
debt |
(3) |
(2) |
(3) |
|
(5) |
(7) |
Purchase of treasury stock |
(79) |
(19) |
- |
|
(98) |
- |
Dividends paid |
(29) |
(29) |
(24) |
|
(58) |
(48) |
Other financing activities (net) |
- |
- |
(1) |
|
- |
(1) |
Net cash used in financing
activities |
(111) |
(50) |
(28) |
|
(161) |
(56) |
Effect of exchange rate changes on cash |
10 |
3 |
3 |
|
13 |
7 |
Change in cash and cash
equivalent |
(38) |
(62) |
62 |
|
(100) |
44 |
|
|
|
|
|
|
|
Free cash flow before dividend and
share buy-back
(C = A+B) |
63 |
(15) |
87 |
|
48 |
93 |
Appendix 1a - Health
& Safety statistics
Health & Safety
Statistics |
Three Months Ended |
June 30,
2017 |
March 31,
2017 |
June 30,
2016 |
Frequency Rate |
1.3 |
1.1 |
2.1 |
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, 2017 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
|
|
|
|
|
Steel Shipment (000t) |
467 |
202 |
8 |
(199) |
478 |
Steel selling price (USD/t) |
2,190 |
2,715 |
15,254 |
|
2,558 |
|
|
|
|
|
|
Financial information |
|
|
|
|
|
Sales (USDm) |
1,052 |
568 |
134 |
(486) |
1,268 |
EBITDA (USDm) |
143 |
12 |
13 |
1
|
169 |
Depreciation and amortisation (USDm) |
(35) |
(3) |
(2) |
(1) |
(41) |
Operating income / (loss) (USDm) |
108 |
9 |
11 |
- |
128 |
|
Quarter Ended
March 31, 2017 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
|
|
|
|
|
Steel Shipment (000t) |
465 |
218 |
9 |
(206) |
486 |
Steel selling price (USD/t) |
2,219 |
2,664 |
13,321 |
|
2,558 |
|
|
|
|
|
|
Financial information |
|
|
|
|
|
Sales (USDm) |
1,061 |
607 |
119 |
(511) |
1,276 |
EBITDA (USDm) |
144 |
33 |
12 |
(18) |
171 |
Depreciation and amortisation (USDm) |
(34) |
(2) |
(2) |
- |
(38) |
Operating income / (loss) (USDm) |
110 |
31 |
10 |
(18) |
133 |
Terms and definitions
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. This
press release also includes Alternative Performance Measures ("APM"
hereafter). The Company believes that these APMs are relevant to
enhance the understanding of its financial position and provides
additional information to investors and management with respect to
the Company's financial performance, capital structure and credit
assessment. These non-GAAP financial measures should be read in
conjunction with and not as an alternative for, Aperam's financial
information prepared in accordance with IFRS. Such non-GAAP
measures may not be comparable to similarly titled measures applied
by other companies. The APM's used are defined in the following
footnotes.
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 before depreciation and
impairment expenses.
4 Free cash flow before dividend and share buy-back 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 575 million by end of 2017. On June 7, 2017, Aperam
announced the third phase of the Leadership Journey® - the
Transformation Program - targeting USD 150 million of additional
EBITDA gains per year by end of 2020.
7 CAPEX relates to capital expenditures and is defined as purchase
of tangible assets, intangible assets and biological assets, net of
change in amount payables on these acquisitions.
8 Includes revolving credit facility of EUR 300 million and EIB
financing of EUR 50 million.
9 Effective Q1 2017, the Company modified the
presentation of assets and liabilities related to the TSR programs
to more appropriately reflect the nature of these items.The
comparative amount in the condensed consolidated statement of
financial position was reclassified for consistency, which resulted
in a net amount of USD 7 million being reclassified from "prepaid
expenses and other current assets/accrued expenses and other
current liabilities" to "inventories, trade receivables and trade
payables" as of June 30, 2016. In addition, amounts in the
condensed consolidated statement of cash flows were similarly
reclassified, which resulted in USD 8 million and USD 62 million
being reclassified from "other operating activities (net)" to
"change in working capital" for the three months period ended June
30, 2016 and six months period ended June 30, 2016,
respectively.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
Aperam (EU:APAM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aperam (EU:APAM)
Historical Stock Chart
From Apr 2023 to Apr 2024