Stainless & Electrical Steel
The Stainless & Electrical Steel segment had sales of USD 1,108 million in the second quarter of 2012. This represents a decrease of 1% compared to sales of USD 1,122 million in the first quarter of 2012. Shipments during the second quarter were 426,000 tonnes, including 263,000 tonnes in Europe and 163,000 tonnes in South America. This is an increase of 11,000 tonnes compared to shipments in the previous quarter of 415,000 tonnes (263,000 tonnes in Europe and 152,000 tonnes in South America). Flat volumes in Europe were offset by an increase of 7% in South America.
The segment had EBITDA of USD 39 million in the second quarter of 2012 compared to USD 30 million in the first quarter of 2012. EBITDA from South America increased from USD 20 million in the first quarter of 2012 to USD 33 million in the second quarter of 2012. The increase in EBITDA was primarily driven by higher volumes in the quarter and the impact from some positive pricing movements. EBITDA from Europe decreased from USD 10 million in the first quarter of 2012 to USD 6 million in the second quarter of 2012. The decrease in EBITDA in Europe was primarily driven by the price cost squeeze in the quarter but was partially offset by the continuing progress of the Leadership Journey®. 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 32 million during the second quarter of 2012 compared to an operating loss of USD 33 million in the first quarter of 2012. Depreciation and impairment expense was USD 71 million in the second quarter of 2012, including USD 13 million of impairment on assets relating to the Leadership Journey®.
Services & Solutions
The Services & Solutions segment had a 4% decrease in sales during the period, from USD 584 million in the first quarter of 2012 to USD 559 million in the second quarter of 2012. In the second quarter of 2012, shipments were 170 thousand tonnes compared to 168 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 second quarter of 2012 of USD 5 million compared to EBITDA of USD 11 million in the first quarter of 2012. Although there was some positive volume growth during the quarter, the decrease in EBITDA was driven primarily by a negative stock effect resulting mainly from the decline in nickel prices.
Depreciation and amortization expense in the second quarter of 2012 was USD 8 million.
The Services & Solutions segment had an operating loss of USD 3 million in the second quarter of 2012 compared to operating income of USD 4 million in the first quarter of 2012.
Alloys & Specialties
The Alloys & Specialties segment had sales in the second quarter of 2012 of USD 172 million, representing a decrease of 3% compared to USD 178 million in the first quarter of 2012. Shipments were flat in the second quarter of 2012 at 10,000 tonnes compared to 10,000 tonnes in the first quarter of 2012.
The Alloys & Specialties segment achieved EBITDA of USD 16 million in the second quarter of 2012 compared to USD 11 million in the first quarter of 2012. The improvement in EBITDA in the second quarter compared to the first quarter of 2012 was primarily the result of a better product mix.
Depreciation and amortization expense in the quarter was USD 2 million.
The Alloys & Specialties segment had operating income of USD 14 million in the second quarter of 2012 compared to operating income of USD 10 million in the first quarter of 2012.
Source - Aperam
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