Luxembourg, November 7,
2016
Highlights |
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Net debt5 of USD 241 million as of
September 30, 2016, representing a gearing of 10% compared to a net
debt of USD 280 million as of June 30, 2016
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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 months ending September 30,
2016
Timoteo Di Maulo, CEO of Aperam, commented:
"Despite the traditional seasonal effect in Europe and slow ramp up
post annual maintenance, Aperam continues to improve its
performance, delivering the best net income and free cash flow in a
third quarter since its inception.
As the market conditions are improving in Europe, we are convinced
that Aperam is very well positioned to deliver solid results thanks
to its strong focus on operational excellence and value
strategy." |
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Prospects |
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Financial Highlights
(on the basis of IFRS)
(USDm)
unless otherwise stated |
Q3 16 |
Q2 16 |
Q3 15 |
9M
2016 |
9M
2015 |
Sales |
1,015 |
1,121 |
1,113 |
3,212 |
3,635 |
EBITDA |
124 |
123 |
108 |
359 |
396 |
Operating income |
81 |
80 |
67 |
234 |
262 |
Net income |
54 |
53 |
31 |
156 |
139 |
Free cash flow before dividend4 |
70 |
87 |
40 |
163 |
142 |
|
Steel shipments (000t) |
457 |
520 |
455 |
1,460 |
1,410 |
EBITDA/tonne (USD) |
271 |
237 |
237 |
246 |
281 |
Basic earnings per share (USD) |
0.69 |
0.68 |
0.40 |
2.00 |
1.79 |
Diluted earnings per share (USD) |
0.65 |
0.52 |
0.27 |
1.89 |
1.57 |
Health & Safety
results
Health and Safety
performance based on Aperam personnel figures and contractors' lost
time injury frequency rate2, was 1.8 in the third quarter of 2016
compared to 2.1 in the second quarter of 2016.
Financial results
analysis for the three-month period ending September 30,
2016
Sales in the third
quarter of 2016 decreased by 9% to USD 1,015 million compared to
USD 1,121 million in the second quarter of 2016. Shipments in the
third quarter of 2016 decreased by 12% at 457 thousand tonnes
compared to 520 thousand tonnes in the second quarter of 2016.
EBITDA has increased
marginally over the quarter from USD 123 million in the second
quarter of 2016 to USD 124 million in the third quarter of 2016.
The Leadership Journey®6 has continued to progress over the quarter
and has contributed a total amount of USD 506 million to EBITDA
since the beginning of 2011.
Depreciation and
amortisation expense in the third quarter of 2016 was USD 43
million.
Aperam had an operating
income in the third quarter of 2016 of USD 81 million compared to
an operating income of USD 80 million in the previous quarter.
Net interest expense and
other financing costs in the third quarter of 2016 were USD 12
million, including financing costs of USD 3 million. Realised and
unrealised foreign exchange and derivative losses were USD 1
million in the third quarter of 2016.
The Company recorded a
net income of USD 54 million, inclusive of an income tax expense of
USD 14 million, in the third quarter of 2016.
Cash flows from
operations in the third quarter of 2016 were positive at USD 103
million, with a working capital increase of USD 13 million. CAPEX
in the third quarter was USD 33 million.
Free cash flow before
dividend4 in the third quarter of 2016 amounted to USD 70
million.
As of September 30,
2016, shareholders' equity was USD 2,527 million and net financial
debt5 was USD 241 million (gross financial debt as of September 30,
2016 was USD 475 million and cash and cash equivalents were USD 234
million).
The Company had
liquidity of USD 690 million as of September 30, 2016, consisting
of cash and cash equivalents of USD 234 million and undrawn credit
lines7 of USD 456 million.
Operating segment
results analysis
Stainless & Electrical Steel
The Stainless &
Electrical Steel segment had sales of USD 819 million in the third
quarter of 2016. This represents a 12% decrease compared to
sales of USD 932 million in the second quarter of 2016. Shipments
during the third quarter were 438 thousand tonnes. This is a 15%
decrease compared to shipments of 516 thousand tonnes in the
previous quarter. The volume decrease was mainly due to
traditional seasonal effects in Europe and slow ramp-up post annual
maintenance which have been resolved since then. Overall, average
selling prices for the Stainless & Electrical Steel segment
slightly increased compared to the previous quarter.
The segment had EBITDA
of USD 102 million in the third quarter of 2016 compared to USD 101
million in the second quarter of 2016. The seasonality in Europe
was more than offset by the good contribution of the Leadership
Journey® and the Top Line strategy as well as the recovery of the
stainless steel prices.
Depreciation and
amortisation expense was USD 37 million in the third quarter of
2016.
The Stainless &
Electrical Steel segment had an operating income of USD 65 million
during the third quarter of 2016 compared to an operating income of
USD 64 million in the second quarter of 2016.
Services & Solutions
The Services &
Solutions segment had a 9% decrease in sales during the quarter,
from USD 519 million in the second quarter of 2016 to USD 473
million in the third quarter of 2016. In the third quarter of 2016,
shipments were 189 thousand tonnes compared to 213 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 third quarter of 2016 of USD 24 million compared to EBITDA
of USD 27 million in the second quarter of 2016. The slight
decrease of EBITDA was due to the traditional seasonal impact on
volumes and mostly compensated for by a slight positive effect from
inventories.
Depreciation and
amortisation expense was USD 4 million in the third quarter of
2016.
The Services &
Solutions segment had an operating income of USD 20 million in the
third quarter of 2016 compared to an operating income of USD 23
million in the second quarter of 2016.
Alloys
& Specialties
The Alloys &
Specialties segment had sales of USD 91 million in the third
quarter of 2016, representing a decrease of 15% compared to USD 107
million in the second quarter of 2016. Shipments were stable in the
third quarter of 2016 at 7 thousand tonnes compared to 7 thousand
tonnes in the second quarter of 2016. Average selling prices
decreased over the quarter due to mix effect.
The Alloys &
Specialties segment achieved EBITDA of USD 5 million in the third
quarter of 2016 compared to USD 7 million in the second quarter of
2016. The EBITDA decrease was mainly due to seasonal effects.
Depreciation and
amortisation expense in the third quarter of 2016 was USD 2
million.
The Alloys &
Specialties segment had an operating income of USD 3 million in the
third quarter of 2016 compared to an operating income of USD 5
million in the second quarter of 2016.
New
developments
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On November 7, 2016,
Aperam announces the appointment of Bernard Hallemans (49 yo) as
Chief Operating Officer Stainless & Electrical Steel Europe and
Member of the Leadership Team. Bernard Hallemans, previously Chief
Technical Officer and Member of the Leadership Team, is replacing
Jean-Paul Rouffiac (64 yo) who will leave on retirement towards the
end of the year. The Chief Technical Officer functions at the
Leadership Team level will be under the responsibility of the Chief
Executive Officer, Timoteo Di Maulo.
Investor conference
call
Aperam management will
host a conference call for members of the investment community to
discuss the third quarter 2016 financial performance at the
following time:
Date |
New York |
London |
Luxembourg |
Monday,
November 7, 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 (+1212 444 0412); and
international (+44(0)20 3427 1906). The participant access code is:
5125612#.
A replay of the conference call will be available until November
13th, 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 5126512#.
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) |
September 30,
2016 |
June 30,
2016 |
September 30,
2015 |
Non current assets |
2,802 |
2,780 |
2,620 |
Intangible assets |
592 |
596 |
565 |
Property, plant and equipments (incl. Biological
assets) |
1,732 |
1,733 |
1,653 |
Investments & Other |
478 |
451 |
402 |
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Current assets & working
capital |
945 |
884 |
818 |
Inventories, trade receivables and trade
payables |
607 |
591 |
640 |
Other assets |
104 |
101 |
110 |
Cash and cash equivalents |
234 |
192 |
68 |
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Shareholders' equity |
2,527 |
2,466 |
2,225 |
Group share |
2,522 |
2,461 |
2,220 |
Non-controlling interest |
5 |
5 |
5 |
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Non current liabilities |
757 |
898 |
853 |
Interest bearing liabilities |
273 |
458 |
445 |
Deferred employee benefits |
183 |
184 |
191 |
Provisions and other |
301 |
256 |
217 |
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Current liabilities (excluding
trade payables) |
463 |
300 |
360 |
Interest bearing liabilities |
202 |
14 |
42 |
Other |
261 |
286 |
318 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(in million of U.S. dollars) |
Three Months Ended |
|
Nine Months Ended |
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
|
September 30, 2016 |
September 30, 2015 |
Sales |
1,015 |
1,121 |
1,113 |
|
3,212 |
3,635 |
EBITDA |
124 |
123 |
108 |
|
359 |
396 |
EBITDA margin (%) |
12.2% |
11.0% |
9.7% |
|
11.2% |
10.9% |
Depreciation & amortisation |
(43) |
(43) |
(41) |
|
(125) |
(134) |
Operating income |
81 |
80 |
67 |
|
234 |
262 |
Loss from other investments and associates |
- |
- |
(6) |
|
- |
(12) |
Net interest expense and other net financing
costs |
(12) |
(13) |
(15) |
|
(34) |
(65) |
Foreign exchange and derivative gains /
(losses) |
(1) |
3 |
(7) |
|
(1) |
(2) |
Income before taxes and
non-controlling interests |
68 |
70 |
39 |
|
199 |
183 |
Income tax expense |
(14) |
(17) |
(8) |
|
(43) |
(43) |
Income before non-controlling
interests |
54 |
53 |
31 |
|
156 |
140 |
Non-controlling interests |
- |
- |
- |
|
- |
1 |
Net income |
54 |
53 |
31 |
|
156 |
139 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in million of U.S. dollars) |
Three Months Ended |
|
Nine Months Ended |
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
|
September 30, 2016 |
September 30, 2015 |
Net income |
54 |
53 |
31 |
|
156 |
139 |
Non-controlling interests |
- |
- |
- |
|
- |
1 |
Depreciation and amortisation |
43 |
43 |
41 |
|
125 |
134 |
Change in working capital |
(13) |
18 |
(43) |
|
(35) |
(110) |
Other |
19 |
(2) |
36 |
|
8 |
59 |
Net cash provided by operating
activities |
103 |
112 |
65 |
|
254 |
223 |
Purchase of PPE, intangible and biological assets
(CAPEX) |
(33) |
(25) |
(26) |
|
(91) |
(84) |
Other investing activities (net) |
- |
- |
1 |
|
- |
3 |
Net cash used in investing
activities |
(33) |
(25) |
(25) |
|
(91) |
(81) |
Payments to banks and long term debt |
(2) |
(3) |
(36) |
|
(9) |
(249) |
Dividend paid |
(25) |
(24) |
- |
|
(73) |
- |
Other financing activities (net) |
- |
(1) |
(2) |
|
(1) |
(3) |
Net cash used in financing
activities |
(27) |
(28) |
(38) |
|
(83) |
(252) |
Effect of exchange rate changes on cash |
(1) |
3 |
(6) |
|
6 |
(19) |
Change in cash and cash
equivalent |
42 |
62 |
(4) |
|
86 |
(129) |
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Free cash flow before
dividend4 |
70 |
87 |
40 |
|
163 |
142 |
Appendix 1a - Health
& Safety statistics
Health & Safety Statistics |
Three Months Ended |
September 30, 2016 |
June 30, 2016 |
September 30,
2015 |
Frequency
Rate |
1.8 |
2.1 |
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
September 30, 2016 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
|
|
|
|
|
Steel Shipment (000t) |
438 |
189 |
7 |
(177) |
457 |
Steel selling price (USD/t) |
1,819 |
2,377 |
13,064 |
|
2,146 |
|
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|
Financial information |
|
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|
|
|
Sales (USDm) |
819 |
473 |
91 |
(368) |
1,015 |
EBITDA (USDm) |
102 |
24 |
5 |
(7) |
124 |
Depreciation & amortisation (USDm) |
37 |
4 |
2 |
- |
43 |
Operating income / (loss) (USDm) |
65 |
20 |
3 |
(7) |
81 |
Quarter Ended
June 30, 2016 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
|
|
|
|
|
Steel Shipment (000t) |
516 |
213 |
7 |
(216) |
520 |
Steel selling price (USD/t) |
1,760 |
2,317 |
13,653 |
|
1,931 |
|
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|
|
|
|
Financial information |
|
|
|
|
|
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 |
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 510 million by end of 2016 and of USD 575 million by
end of 2017, since the beginning of 2011.
7 Includes borrowing base facility of USD 400 million (subject to
eligible collateral available) and EIB financing of EUR 50
million.
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
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