Luxembourg, November 8,
2017
Highlights |
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Net financial debt of USD 116 million as
of September 30, 2017, compared to USD 235 million as of June 30,
2017.
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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 September
30, 2017
Timoteo Di Maulo, CEO of Aperam, commented:
"Aperam has been able to manage a challenging environment in the
third quarter and deliver a solid financial performance thanks to
its agility and its resilient business model.
Looking forward, we remain confident in the perspectives of the
stainless steel market as well as in our ability to
continuously improve our operational performance." |
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Prospects |
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Financial Highlights
(on the basis of financial information prepared under IFRS)
(USDm) unless otherwise stated |
Q3 17 |
Q2 17 |
Q3 16 |
9M 2017 |
9M 2016 |
Sales |
1,204 |
1,268 |
1,015 |
3,748 |
3,212 |
EBITDA |
125 |
169 |
124 |
465 |
359 |
Operating income |
82 |
128 |
81 |
343 |
234 |
Net income |
62 |
85 |
54 |
240 |
156 |
Free cash flow before dividend and share buy-back |
50 |
63 |
70 |
98 |
163 |
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Steel shipments (000t) |
477 |
478 |
457 |
1,441 |
1,460 |
EBITDA/tonne (USD) |
262 |
354 |
271 |
323 |
246 |
Basic earnings per share (USD) |
0.76 |
1.10 |
0.69 |
3.06 |
2.00 |
Diluted earnings per share (USD) |
0.75 |
0.87 |
0.65 |
2.97 |
1.89 |
Health & Safety
results analysis
Health and Safety
performance based on Aperam personnel figures and contractors lost
time injury frequency rate, was 2.0x in the third quarter of 2017
compared to 1.3x in the second quarter of 2017.
Financial results
analysis for the three months period ending September 30,
2017
Sales for the third
quarter of 2017 decreased by 5% at USD 1,204 million compared to
USD 1,268 million for the second quarter of 2017. Steel shipments
for the third quarter of 2017 were stable at 477 thousand tonnes
compared to 478 thousand tonnes for the second quarter of 2017.
EBITDA was USD 125
million for the third quarter of 2017 compared to EBITDA of USD 169
million for the second quarter of 2017. EBITDA decreased due to
seasonality in Europe and the decline in ferrochrome price in the
third quarter that led to destocking, pressure on stainless steel
prices and negative inventory effects. This was partially mitigated
by good operational performance as well as the contribution of the
Top Line strategy and continuous Leadership Journey®2
contribution.
Depreciation and
amortisation expense for the third quarter of 2017 was USD 43
million.
Aperam had an operating
income for the third quarter of 2017 of USD 82 million compared to
an operating income of USD 128 million for the previous
quarter.
Net interest expense and
other net financing costs for the third quarter of 2017 were USD 10
million, including financing costs of USD 3 million. Realized and
unrealized foreign exchange and derivative gains were USD 4 million
for the third quarter of 2017.
The Company recorded a
net income of USD 62 million, inclusive of an income tax expense of
USD 14 million, for the third quarter of 2017.
Cash flows from
operations for the third quarter were positive at USD 82 million,
with a working capital increase of USD 41 million. CAPEX for the
third quarter was USD 31 million.
As of September 30,
2017, shareholders' equity was USD 2,874 million and net financial
debt was 116 million (gross financial debt as of September 30, 2017
was USD 361 million and cash and cash equivalents were USD 245
million).
During the third quarter
of 2017, the cash returns to shareholders amounted to USD 31
million, consisting fully of dividend. Total cash returned to
shareholders in the first nine months of 2017 amounted to USD 187
million consisting of USD 98 million of share buy-back and USD 89
million of dividend.
The Company had
liquidity of USD 658 million as of September 30, 2017, consisting
of cash and cash equivalents of USD 245 million and undrawn credit
lines3 of USD 413 million.
Operating segment
results analysis
Stainless & Electrical Steel
The Stainless &
Electrical Steel segment had sales of USD 962 million for the third
quarter of 2017. This represents a 9% decrease compared to sales of
USD 1,052 million for the second quarter of 2017. Steel shipments
during the third quarter were 451 thousand tonnes, a 3% decrease
compared to steel shipments for the second quarter of 2017 of 467
thousand tonnes. Europe seasonality was partially offset by the
return to normal operations at our Châtelet plant following the
change of motor during the summer maintenance.
The segment had EBITDA
of USD 92 million for the third quarter of 2017 compared to USD 143
million for the second quarter of 2017. This decrease of EBITDA was
due to seasonality in Europe combined with destocking led by the
decline in ferrochrome price as well as some negative inventory
effect. This was partially offset by the Top Line strategy and
contributions from the Leadership Journey®. Châtelet outage
is now fully resolved both operationally, following the motor
replacement during the summer maintenance, and financially with a
final confirmation of additional USD 20 million insurance
indemnification booked in the third quarter of 2017. In addition,
Aperam booked a one-off USD 10 million charge mainly related to
indirect taxes amnesty settlements in Brazil.
Depreciation and
amortisation expense was USD 39 million for the third quarter of
2017.
The Stainless &
Electrical Steel segment had an operating income of USD 53 million
during the third quarter of 2017 compared to an operating income of
USD 108 million during the second quarter of 2017.
Services & Solutions
The Services &
Solutions segment had a 1% decrease in sales during the third
quarter, from USD 568 million for the second quarter of 2017 to USD
565 million for the third quarter of 2017. In the third quarter of
2017, steel shipments were 203 thousand tonnes compared to 202
thousand tonnes in the previous quarter thanks to normalized
supplies following the Châtelet technical recovery. The Services
& Solutions segment had slightly lower average steel selling
prices during the quarter.
The segment had EBITDA
for the third quarter of 2017 of USD 8 million compared to EBITDA
of USD 12 million for the second quarter of 2017. The decrease in
EBITDA was mainly driven by the negative inventory effects.
Depreciation and
amortisation expense was USD 3 million for the third quarter of
2017.
The Services &
Solutions segment had an operating income of USD 5 million for the
third quarter of 2017 compared to an operating income of USD 9
million for the second quarter of 2017.
Alloys
& Specialties
The Alloys &
Specialties segment had sales for the third quarter of 2017 of USD
122 million, representing a decrease of 9% compared to USD 134
million for the second quarter of 2017. Steel shipments decreased
for the third quarter of 2017 to 7 thousand tonnes compared to 8
thousand tonnes for the second quarter of 2017. Average steel
selling prices increased over the quarter.
The Alloys &
Specialties segment achieved EBITDA of USD 15 million for the third
quarter of 2017 compared to USD 13 million for the second quarter
of 2017, as market environment continues to improve.
Depreciation and
amortisation expense for the third quarter of 2017 was USD 1
million.
The Alloys &
Specialties segment had an operating income of USD 14 million for
the third quarter of 2017 compared to an operating income of USD 11
million for the second quarter of 2017.
Recent
developments
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On September 8, 2017,
Aperam gave notice to bondholders of its convertible bonds maturing
2020 that it intended to redeem the bonds on the optional
redemption date, being 16 October 2017, at their principal amount
together with accrued but unpaid interest to such date.
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On September 18, 2017,
Aperam announced that Ines Kolmsee is appointed Chief Executive
Officer of its Services & Solutions segment effective October
1, 2017. Ines is a Member of Aperam's Leadership Team and reports
to Timoteo Di Maulo, CEO of Aperam.
Investor conference
call
Aperam management will
host a conference call for members of the investment community to
discuss the third quarter 2017 financial performance at the
following time:
Date |
New York |
London |
Luxembourg |
Wednesday
November 8, 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 30); USA (+1 646 254 3365); and
international (+44(0)20 3427 1904). The participant access code is:
7422761#.
A replay of the conference call will be available until November
13th, 2017: France (+33 (0)1 70 48 00 94); USA (+1 719 457 0820)
and international (+44 (0)20 7984 7568). The participant access
code is 7422761#.
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) |
September 30,
2017 |
June 30,
2017 |
September 30,
2016 |
Non current assets |
2,944 |
2,841 |
2,802 |
Goodwill and intangible assets |
609 |
589 |
592 |
Property, plant and equipments (incl. Biological
assets) |
1,814 |
1,753 |
1,732 |
Investments & Other |
521 |
499 |
478 |
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Current assets & working
capital4 |
1,174 |
1,062 |
943 |
Inventories, trade receivables and trade
payables4 |
815 |
750 |
621 |
Prepaid expenses and other current assets4 |
114 |
87 |
88 |
Cash & cash equivalents (C) |
245 |
225 |
234 |
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Shareholders' equity |
2,874 |
2,597 |
2,527 |
Group share |
2,870 |
2,593 |
2,522 |
Non-controlling interest |
4 |
4 |
5 |
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Non current liabilities |
855 |
813 |
757 |
Long-term debt, net of current portion (A) |
284 |
281 |
273 |
Deferred employee benefits |
189 |
184 |
183 |
Provisions and other |
382 |
348 |
301 |
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Current liabilities (excluding
trade payables)4 |
389 |
493 |
461 |
Short-term debt and current portion of long-term
debt (B) |
77 |
179 |
202 |
Accrued expenses and other current
liabilities4 |
312 |
314 |
259 |
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Net Financial Debt (D = A+B-C
) |
116 |
235 |
241 |
APERAM CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(in million of U.S. dollars) |
Three Months Ended |
|
Nine Months Ended |
September 30, 2017 |
June 30, 2017 |
September 30, 2016 |
|
September 30, 2017 |
September 30, 2016 |
Sales |
1,204 |
1,268 |
1,015 |
|
3,748 |
3,212 |
Adjusted EBITDA (E = C-D) |
135 |
169 |
124 |
|
475 |
359 |
Adjusted EBITDA margin % |
11.2% |
13.3% |
12.2% |
|
12.7% |
11.2% |
Exceptional items (D) |
(10) |
- |
- |
|
(10) |
- |
EBITDA (C = A-B) |
125 |
169 |
124 |
|
465 |
359 |
EBITDA margin % |
10.4% |
13.3% |
12.2% |
|
12.4% |
11.2% |
Depreciation & amortisation (B) |
(43) |
(41) |
(43) |
|
(122) |
(125) |
Operating income (A) |
82 |
128 |
81 |
|
343 |
234 |
Operating margin % |
6.8% |
10.1% |
8.0% |
|
9.2% |
7.3% |
Net interest expense and other net financing
costs |
(10) |
(13) |
(12) |
|
(35) |
(34) |
Foreign exchange and derivative gains /
(losses) |
4 |
(5) |
(1) |
|
(1) |
(1) |
Income before taxes |
76 |
110 |
68 |
|
307 |
199 |
Income tax expense |
(14) |
(25) |
(14) |
|
(67) |
(43) |
Effective tax rate % |
19.1% |
22.8% |
20.9% |
|
21.9% |
21.7% |
Net income |
62 |
85 |
54 |
|
240 |
156 |
APERAM CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS
(in million of U.S. dollars) |
Three Months Ended |
|
Nine Months Ended |
September 30, 2017 |
June 30, 2017 |
September 30,
2016 |
|
September 30, 2017 |
September 30, 2016 |
Net income |
62 |
85 |
54 |
|
240 |
156 |
Depreciation and amortisation |
43 |
41 |
43 |
|
122 |
125 |
Change in working capital4 |
(41) |
(55) |
(20) |
|
(249) |
(104) |
Other operating activities (net)4 |
18 |
29 |
26 |
|
96 |
77 |
Net cash provided by operating
activities (A) |
82 |
100 |
103 |
|
209 |
254 |
Purchase of PPE, intangible and biological assets
(CAPEX) |
(31) |
(39) |
(33) |
|
(112) |
(91) |
Other investing activities (net) |
(1) |
2 |
- |
|
1 |
- |
Net cash used in investing
activities (B) |
(32) |
(37) |
(33) |
|
(111) |
(91) |
Net payments to banks and long term debt |
(2) |
(3) |
(2) |
|
(7) |
(9) |
Purchase of treasury stock |
- |
(79) |
- |
|
(98) |
- |
Dividends paid |
(31) |
(29) |
(25) |
|
(89) |
(73) |
Other financing activities (net) |
(1) |
- |
- |
|
(1) |
(1) |
Net cash used in financing
activities |
(34) |
(111) |
(27) |
|
(195) |
(83) |
Effect of exchange rate changes on cash |
4 |
10 |
(1) |
|
17 |
6 |
Change in cash and cash
equivalent |
20 |
(38) |
42 |
|
(80) |
86 |
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Free cash flow before dividend and
share buy-back
(C = A+B) |
50 |
63 |
70 |
|
98 |
163 |
Appendix 1a - Health
& Safety statistics
Health & Safety
Statistics |
Three Months Ended |
September 30,
2017 |
June 30,
2017 |
September 30,
2016 |
Frequency Rate |
2.0 |
1.3 |
1.8 |
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, 2017 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
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|
Steel Shipments (000t) |
451 |
203 |
7 |
(184) |
477 |
Average steel selling price (USD/t) |
2,058 |
2,693 |
15,890 |
|
2,444 |
|
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|
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|
Financial information |
|
|
|
|
|
Sales (USDm) |
962 |
565 |
122 |
(445) |
1,204 |
Adjusted EBITDA (USDm) |
102 |
8 |
15 |
10 |
135 |
EBITDA (USDm) |
92 |
8 |
15 |
10
|
125 |
Depreciation and amortisation (USDm) |
(39) |
(3) |
(1) |
- |
(43) |
Operating income (USDm) |
53 |
5 |
14 |
10 |
82 |
|
Quarter Ended
June 30, 2017 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
Operational information |
|
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|
Steel Shipments (000t) |
467 |
202 |
8 |
(199) |
478 |
Average steel selling price (USD/t) |
2,190 |
2,715 |
15,254 |
|
2,558 |
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Financial information |
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|
|
|
|
Sales (USDm) |
1,052 |
568 |
134 |
(486) |
1,268 |
Adjusted EBITDA (USDm) |
143 |
12 |
13 |
1
|
169 |
EBITDA (USDm) |
143 |
12 |
13 |
1
|
169 |
Depreciation and amortisation (USDm) |
(35) |
(3) |
(2) |
(1) |
(41) |
Operating income (USDm) |
108 |
9 |
11 |
- |
128 |
Appendix 2 - Terms and
definitions
Unless indicated otherwise, or the
context otherwise requires, references in this earnings release
report to the following terms have the meanings set out next to
them below:
Adjusted EBITDA:
operating income before depreciation, amortization and impairment
expenses and exceptional items.
Average steel selling prices: calculated as
steel sales divided by steel shipments.
Cash and cash equivalents: represents cash and
cash equivalents, restricted cash and short-term
investments.
CAPEX: relates to capital expenditures and is
defined as purchase of tangible assets, intangible assets and
biological assets.
EBITDA: operating income before depreciation,
amortisation and impairment expenses
EBITDA/tonne: calculated as EBITDA divided by
total steel shipments.
Exceptional items: consists of (i) inventory
write-downs equal to or exceeding 10% of total related inventories
values before write-down at the considered quarter end (ii)
restructuring (charges)/gains equal to or exceeding USD 10 million
for the considered quarter, (iii) capital (loss)/gain on asset
disposals equal to or exceeding USD 10 million for the considered
quarter or (iv) other non-recurring items equal to or exceeding USD
10 million for the considered quarter.
Free cash flow before dividend and share
buy-back: net cash provided by operating activities less net
cash used in investing activities.
Gross financial debt: long-term debt plus
short-term debt.
Liquidity: Cash and cash equivalent and
undrawn credit lines.
LTI frequency rate: Lost time injury frequency
rate equals lost time injuries per 1,000,000 worked hours, based on
own personnel and contractors.
Net financial debt: long-term debt, plus
short-term debt less cash and cash equivalents.
Net financial debt/EBITDA or Gearing: Refers
to Net financial debt divided by last twelve months EBITDA
calculation.
Shipments: information at segment and group
level eliminates inter-segment shipments (which are primarily
between Stainless & Electrical Steel and Services &
Solutions) and intra-segment shipments, respectively.
Working capital: trade accounts receivable
plus inventories less trade accounts payable.
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 under Appendix 2
"Terms & definitions".
2 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.
3 Includes revolving credit facility of EUR 300 million and EIB
financing of EUR 50 million.
4 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 14 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 September 30, 2016. In addition, amounts in the condensed
consolidated statement of cash flows were similarly reclassified,
which resulted in USD (7) million and USD (69) million being
reclassified from "other operating activities (net)" to "change in
working capital" for the three months period ended September 30,
2016 and nine months period ended September 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
Grafico Azioni Aperam (EU:APAM)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Aperam (EU:APAM)
Storico
Da Set 2023 a Set 2024