Aperam : First quarter 2012 results
(1)
Luxembourg, 9 May 2012
Highlights
Aperam (referred to as "Aperam" or the "Company")
(Amsterdam, Luxembourg, Paris: APAM and NYRS: APEMY), today announced results
for the three month period ending March 31, 2012
-
Shipments of 433 thousand tonnes in Q1 2012, flat compared to shipments of 429 thousand tonnes in Q4 2011
-
Basic earnings per share of USD (0.14) in Q1 2012
-
Cash flow from operations amounted to USD 79 million in Q1 2012
-
Net debt reduced to USD 857 million at March 31, 2012, representing a gearing of 24%
Prospects
-
EBITDA in Q2 2012 is expected to be comparable to EBITDA in Q1 2012 and net debt to remain under control
Philippe Darmayan, CEO of Aperam,
commented:
"Despite a more difficult environment
than anticipated, Aperam has been able to achieve an improved performance in Q1
2012 compared to Q4 2011. Aperam was also able to slightly reduce net debt in
the quarter.
Looking forward, we continue to remain
cautious considering the global economic uncertainty for 2012. In this
environment, our key priorities for 2012 will be to deliver on the Leadership
Journey(TM) and to maintain a strong control on net debt."
Financial Highlights (on the
basis of IFRS)
(USDm) unless otherwise
stated
|
Q1 2012
|
Q4 2011
|
Q1 2011
|
Sales
|
1,409
|
1,436
|
1,681
|
EBITDA
|
64
|
53
|
139
|
Operating (loss) income
|
(13)
|
(29)
|
70
|
Net (loss) income
|
(11)
|
(46)
|
25
|
|
|
|
|
Steel shipments (000t)
|
433
|
429
|
452
|
EBITDA/tonne (USD)
|
148
|
124
|
308
|
Basic earnings per share
(USD)
|
(0.14)
|
(0.57)
|
0.32
|
Health &
Safety
results analysis
Health and Safety performance, based on
Aperam personnel figures and contractors lost time injury frequency
rate2, was
1.0x in the first quarter of 2012 compared to 0.3x in the fourth quarter of
2011.
Financial results analysis
Sales in the first quarter of 2012
decreased by 2% to USD 1,409 million compared to USD 1,436 million in the fourth
quarter of 2011. Shipments in the first quarter of 2012 were flat at 433
thousand tonnes compared to 429 thousand tonnes in the fourth quarter of 2011.
EBITDA was USD 64 million in the first
quarter of 2012 compared to EBITDA of USD 53 million in the fourth quarter of
2011. The increase in EBITDA quarter versus quarter was primarily driven by the
continuing progress of the Leadership Journey(TM) [4]. The Leadership Journey(TM) has
contributed USD 204 million to EBITDA since the beginning of 2011.
Depreciation and amortization expense
in the first quarter of 2012 was USD 77 million.
Aperam had an operating loss in the
first quarter of USD 13 million compared to an operating loss of USD 29 million
in the previous quarter.
Net interest expense and other
financing costs in the first quarter of 2012 were USD 13 million, including
financing costs of USD 15 million. Unrealized foreign exchange and derivative
gains were USD 1 million in the first quarter of 2012.
The Company recorded a net loss of USD
11 million, inclusive of an income tax benefit of USD 14 million in the first
quarter of 2012.
Cash flows from operations in the first
quarter were USD 79 million, with a working capital decrease of USD 27 million.
CAPEX in the first quarter was USD 40 million.
As of March 31, 2012, shareholder's
equity was USD 3,545 million and net financial debt was USD 857 million (gross
financial debt as of March 31, 2012 was USD 1,024 million and cash & cash
equivalents were USD 167 million).
The Company had liquidity of USD 617
million as of March 31, 2012, consisting of cash and cash equivalents (including
short-term investments) of USD 167 million and available credit lines of USD 450
million.
Operating segment results
analysis
Stainless & Electrical
Steel
The Stainless & Electrical Steel
segment had sales of USD 1,122 million in the first quarter of 2012. This
represents an increase of 1% compared to sales of USD 1,107 million in the
fourth quarter of 2011. Shipments during the first quarter were 415 thousand
tonnes, including 263 thousand tonnes in Europe and 152 thousand tonnes in South
America. This is an increase of 19 thousand tonnes compared to the previous
quarter's shipments of 396 thousand tonnes (238 thousand tonnes in Europe and
158 thousand tonnes in South America). The 4% volume decrease in South America
was offset by the 11% volume increase in Europe.
The segment had EBITDA of USD 30
million in the first quarter of 2012 compared to USD 26 million in the fourth
quarter of 2011. EBITDA from South America decreased from USD 23 million in the
fourth quarter of 2011 to USD 20 million in the first quarter of 2012. The
impact of lower volumes was partially offset by the continuing progress of the
Leadership Journey(TM). EBITDA from Europe increased from USD 3 million in the
fourth quarter of 2011 to USD 10 million in the first quarter of 2012. The
improvement in EBITDA was driven by the increase in volumes in Europe during the
quarter. Additionally, average steel selling prices for the Stainless &
Electrical Steel segment were lower for the quarter.
The Stainless & Electrical Steel
segment had an operating loss of USD 33 million during the first quarter of 2012
compared to an operating loss of USD 37 million in the fourth quarter of 2011.
Depreciation and amortization expense was USD 63 million in the first quarter of
2012.
Services &
Solutions
The Services & Solutions segment
had a 7% increase in sales during the period, from USD 546 million in the fourth
quarter of 2011 to USD 584 million in the first quarter of 2012. In the first
quarter of 2012, shipments were 168 thousand tonnes compared to 149 thousand
tonnes in the previous quarter. The Services & Solutions segment also had
lower average selling prices for the period.
The segment had EBITDA in the first
quarter of 2012 of USD 11 million compared to negative EBITDA of USD 6 million
in the fourth quarter of 2011. The improvement in EBITDA was driven primarily by
the increase in volumes. In addition, the segment was also impacted in the
fourth quarter of 2011 by a negative stock effect resulting primarily from the
decline in nickel prices.
Depreciation and amortization expense
in the first quarter of 2012 was USD 7 million.
The Services & Solutions segment
had operating income of USD 4 million in the first quarter of 2012 compared to
an operating loss of USD 17 million in the fourth quarter of 2011.
Alloys &
Specialties
The Alloys & Specialties segment
had sales in the first quarter of 2012 of USD 178 million, representing an
increase of 16% compared to USD 153 million in the fourth quarter of 2011.
Shipments were higher in the first quarter of 2012 at 10 thousand tonnes
compared to 8 thousand tonnes in the fourth quarter of 2011.
The Alloys & Specialties segment
achieved EBITDA of USD 11 million in the first quarter of 2012 compared to USD
12 million in the fourth quarter of 2011. Volumes were higher and average
selling prices were lower in the quarter.
Depreciation and amortization expense
for the quarter was USD 1 million.
The Alloys & Specialties segment
had operating income of USD 10 million in the first quarter of 2012 compared to
operating income of USD 10 million in the fourth quarter of 2011.
New
developments
-
On May 8, 2012, the Annual and Extraordinary General Meetings of Shareholders of Aperam in Luxembourg approved all resolutions on the agenda by a large majority. 51,316,167 shares or 65.75% of the Company's share capital were represented at the meetings. The results of the votes will be posted in due course on www.aperam.com under "Investors" > "General Meeting - 8 May 2012". In particular, the shareholders approved the consolidated financial statements as of and for the fiscal year ended December 31, 2011. In addition, the shareholders approved the proposed amendments to the Articles of Association of the Company to reflect recent changes in Luxembourg law.
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