Spanish stainless steel maker Acerinox has reported EUR 266 million profit for January-March 2022 quarter, highest ever quarterly net profit, as strong demand for steel boosted prices. The rapid post-COVID recovery, supply chain constraints and war in Ukraine have all helped drive up prices for commodities and steel is no exception.----------------------------------Q1 Performance HighlightsProduction up 7% QoQEBITDA of EUR 422 million, the second best on record and strongest since Q2 2006Net profit of EUR 266 million, the strongest ever------------------Other Highlights1. Temporary production disruptions at Algeciras due to exorbitant energy costs in the Spanish market forced us to close the melt shop in Algeciras for several days and transportation strike in Spain caused major supply disruptions to and from Algeciras2. VDM integration remains on track (synergies achieved: 5 million EUR, 29% of the total target for the year)3. Investment in NWC of 345 million EUR in Q1The company said “It expects the market trend to continue and to push EBITDA even higher in the second quarter. Uncertainties remain in place: invasion in Ukraine, energy prices and inflation in all of our raw materials and consumables.”
Spanish stainless steel maker Acerinox has reported EUR 266 million profit for January-March 2022 quarter, highest ever quarterly net profit, as strong demand for steel boosted prices. The rapid post-COVID recovery, supply chain constraints and war in Ukraine have all helped drive up prices for commodities and steel is no exception.----------------------------------Q1 Performance HighlightsProduction up 7% QoQEBITDA of EUR 422 million, the second best on record and strongest since Q2 2006Net profit of EUR 266 million, the strongest ever------------------Other Highlights1. Temporary production disruptions at Algeciras due to exorbitant energy costs in the Spanish market forced us to close the melt shop in Algeciras for several days and transportation strike in Spain caused major supply disruptions to and from Algeciras2. VDM integration remains on track (synergies achieved: 5 million EUR, 29% of the total target for the year)3. Investment in NWC of 345 million EUR in Q1The company said “It expects the market trend to continue and to push EBITDA even higher in the second quarter. Uncertainties remain in place: invasion in Ukraine, energy prices and inflation in all of our raw materials and consumables.”
