Acerinox signs historic results as of September with earnings of 741 million

MADRID, 27 Oct.

Acerinox signs historic results as of September with earnings of 741 million


Acerinox obtained a net profit of 741 million euros in the first nine months of the year, which means doubling the 373 million euros for the same period last year, the company informed the National Securities Market Commission (CNMV).

The steel group highlighted that these figures represent the best results in its history as of September, "despite the change in the economic situation, and once the inventory rebuilding process started at the end of 2020 has been completed."

Acerinox's turnover between January and September reached 6,996 million euros, an increase of 47% compared to the first nine months of 2021.

The gross operating result (Ebitda) at the end of last September stood at 1,186 million euros, 77% more. The Ebitda margin on sales amounted to 17%. In the third quarter of the year, the group carried out an impairment of inventories amounting to 65 million euros.

On the other hand, Acerinox has completed the first 4% share repurchase program that began in December. The cash outflow in the year was 115 million euros.

The company increased its working capital by 1,021 million euros, mainly due to the increase in inventories. Its net financial debt stood at 763 million euros at the end of September, after increasing by 185 million euros compared to December 2021.

The CEO of Acerinox, Bernardo Velázquez, pointed out that the change in customer expectations has caused inventories to be high in most markets, "starting a regularization process, which we hope will end at the beginning of 2023."

Thus, the manager estimated "positive" forecasts for the American market, the main one for the group, while in the European market he pointed out that "the uncertainty caused by the war and high energy prices predominate". "In contrast, the market for high-performance alloys continues to evolve positively," he added.

In this way, Acerinox foresees that the fourth quarter will be affected by the reduction of inventories in the market and the circumstances described, with an estimate of an Ebitda lower than that of the third. Even so, he maintains that the results of 2022 will be "the best in his history".

In the fourth quarter, the company also expects a reduction in working capital that would have a positive effect on cash generation and debt reduction, as well as an improvement in the situation in the first quarter of 2023, once the adjusted inventories.