Luxembourg headquartered stainless steel giant Aperam announced net income of EUR 317 million in April-June 2022 quarter, compared to EUR 219 million in January-March 2022 quarter. Aperam CEO Mr Timoteo Di Maulo said “We achieved the sixth consecutive set of record results despite an increasingly challenging market environment. While Brazil is stable at a high level, adverse market conditions have increased in Europe. As we continue to implement our Strategy 2025, we trust our agile and resilient business model to continue to deliver benchmark cash returns for our investors in today's markets.” April-June 2022 HighlightsShipments – 635 KT, down6% QoQSales – EUR 2.457 million, up 8% QoQOperating income - EUR 356 million, up 34% QoQNet income - EUR 317 million, up 70% QoQEBITDA - EUR 402 million, up 30% QoQEBlTDA/tonne - EUR 633 per tonne, up 37% QoQ January-June 2022 HighlightsShipments - 1,308 KT, up 34% YoYSales - EUR 4.722 million, up 93% YoYOperating income - EUR 622 million, up 66% YoYNet income - EUR 504 million, up 53% YoYEBITDA - EUR 712 million, up 60% YoYEBlDTA/tonne - EUR 544 per tonne, up 19% YoY The Stainless & Electrical Steel segment had sales of EUR 1,643 million for the second quarter of 2022. This represents an 8% increase compared to sales of EUR 1,523 million for the first quarter of 2022. Steel shipments during the second quarter were 432 thousand tonnes, a decrease of 3% compared to shipments of 445 thousand tonnes during the previous quarter. Economic uncertainty and the volatile nickel price weighed on Europe while volumes in Brazil increased seasonally quarter on quarter. Average steel selling prices for the Stainless & Electrical Steel segment increased by 11% compared to the previous quarter. The segment generated an EBITDA of EUR 328 million for the second quarter of 2022 compared to EUR 272 million for the first quarter of 2022. The effect of favorable price & input cost development, and higher inventory valuation gains more than compensated for the volume effect. The Services & Solutions segment had sales of EUR 832 million for the second quarter of 2022 representing a decrease of 2% compared to sales of EUR 845 million for the first quarter of 2022. For the second quarter of 2022, steel shipments were 172 thousand tonnes compared to 199 thousand tonnes during the previous quarter. The Services & Solutions segment had higher average steel selling prices during the second quarter of 2022 compared to the first quarter of 2022. The segment generated an EBITDA of EUR 45 million for the second quarter of 2022 compared to an EBITDA of EUR 73 million for the first quarter of 2022. Lower volumes and a price & cost squeeze being closer to the end customers was the main driver for the decrease in EBITDA. The Alloys & Specialties segment had sales of EUR 162 million for the second quarter of 2022 representing an increase of 9% compared to EUR 148 million for the first quarter of 2022. Steel shipments remained stable during the second quarter of 2022 at 7 thousand tonnes. Average steel selling prices were higher during the second quarter. The Alloys & Specialties segment achieved EBITDA of EUR 15 million for the second quarter of 2022 compared to EUR 21 million for the first quarter of 2022. Reduction in Inventory valuation gains compared to previous quarter was not fully compensated by a favorable price & input cost development. The Recycling & Renewables segment had sales of EUR 788 million for the second quarter of 2022 representing an increase of 7% compared to EUR 735 million sales for the first quarter of 2022. Shipments decreased by 8% during the second quarter of 2022 at 363 thousand tonnes. Average selling prices were higher during the second quarter. EBITDA increased during the quarter to EUR 39 million compared to a negative EBITDA of EUR (39) million in Q1 2022 including a bargain gain reversal of EUR (53) million. The Recycling & Renewables segment achieved Adjusted EBITDA of EUR 39 million for the second quarter of 2022 compared to Adjusted EBITDA of EUR 14 million for the first quarter of 2022. Recuperation of one-off costs that burdened the previous quarter due to Nickel volatility and higher prices more than compensated lower volumes. Aperam is a company, listed on the Amsterdam, Brussels, Paris, Madrid and Luxembourg stock exchanges and with facilities in Brazil, Belgium and France, which concentrates on the production of stainless steel and specialty steel. It was spun out of ArcelorMittal at the start of 2011; the facilities that became Aperam had about 27% by turnover of the stainless-steel market as of 2009. The Brazilian facility uses charcoal from a series of eucalyptus forests owned and managed by the group rather than coking coal to reduce the material; the European facilities use electric-arc furnaces fed with scrap. The Brazilian facilities of Aperam mostly correspond to Aperam South America, old Acesita, which was privatised by the Brazilian government in 1992 and purchased by Usinor in 1998. Usinor merged with Arbed and Aceralia to become Arcelor in 2001 and Aperam became a wholly owned subsidiary of ArcelorMittal in 2007 in the hostile takeover of state-owned enterprise Arcelor by Mr Lakshmi Mittal. As of June 2021, 40.83% of Aperam is owned by the Lakshmi Mittal family.
Luxembourg headquartered stainless steel giant Aperam announced net income of EUR 317 million in April-June 2022 quarter, compared to EUR 219 million in January-March 2022 quarter. Aperam CEO Mr Timoteo Di Maulo said “We achieved the sixth consecutive set of record results despite an increasingly challenging market environment. While Brazil is stable at a high level, adverse market conditions have increased in Europe. As we continue to implement our Strategy 2025, we trust our agile and resilient business model to continue to deliver benchmark cash returns for our investors in today's markets.” April-June 2022 HighlightsShipments – 635 KT, down6% QoQSales – EUR 2.457 million, up 8% QoQOperating income - EUR 356 million, up 34% QoQNet income - EUR 317 million, up 70% QoQEBITDA - EUR 402 million, up 30% QoQEBlTDA/tonne - EUR 633 per tonne, up 37% QoQ January-June 2022 HighlightsShipments - 1,308 KT, up 34% YoYSales - EUR 4.722 million, up 93% YoYOperating income - EUR 622 million, up 66% YoYNet income - EUR 504 million, up 53% YoYEBITDA - EUR 712 million, up 60% YoYEBlDTA/tonne - EUR 544 per tonne, up 19% YoY The Stainless & Electrical Steel segment had sales of EUR 1,643 million for the second quarter of 2022. This represents an 8% increase compared to sales of EUR 1,523 million for the first quarter of 2022. Steel shipments during the second quarter were 432 thousand tonnes, a decrease of 3% compared to shipments of 445 thousand tonnes during the previous quarter. Economic uncertainty and the volatile nickel price weighed on Europe while volumes in Brazil increased seasonally quarter on quarter. Average steel selling prices for the Stainless & Electrical Steel segment increased by 11% compared to the previous quarter. The segment generated an EBITDA of EUR 328 million for the second quarter of 2022 compared to EUR 272 million for the first quarter of 2022. The effect of favorable price & input cost development, and higher inventory valuation gains more than compensated for the volume effect. The Services & Solutions segment had sales of EUR 832 million for the second quarter of 2022 representing a decrease of 2% compared to sales of EUR 845 million for the first quarter of 2022. For the second quarter of 2022, steel shipments were 172 thousand tonnes compared to 199 thousand tonnes during the previous quarter. The Services & Solutions segment had higher average steel selling prices during the second quarter of 2022 compared to the first quarter of 2022. The segment generated an EBITDA of EUR 45 million for the second quarter of 2022 compared to an EBITDA of EUR 73 million for the first quarter of 2022. Lower volumes and a price & cost squeeze being closer to the end customers was the main driver for the decrease in EBITDA. The Alloys & Specialties segment had sales of EUR 162 million for the second quarter of 2022 representing an increase of 9% compared to EUR 148 million for the first quarter of 2022. Steel shipments remained stable during the second quarter of 2022 at 7 thousand tonnes. Average steel selling prices were higher during the second quarter. The Alloys & Specialties segment achieved EBITDA of EUR 15 million for the second quarter of 2022 compared to EUR 21 million for the first quarter of 2022. Reduction in Inventory valuation gains compared to previous quarter was not fully compensated by a favorable price & input cost development. The Recycling & Renewables segment had sales of EUR 788 million for the second quarter of 2022 representing an increase of 7% compared to EUR 735 million sales for the first quarter of 2022. Shipments decreased by 8% during the second quarter of 2022 at 363 thousand tonnes. Average selling prices were higher during the second quarter. EBITDA increased during the quarter to EUR 39 million compared to a negative EBITDA of EUR (39) million in Q1 2022 including a bargain gain reversal of EUR (53) million. The Recycling & Renewables segment achieved Adjusted EBITDA of EUR 39 million for the second quarter of 2022 compared to Adjusted EBITDA of EUR 14 million for the first quarter of 2022. Recuperation of one-off costs that burdened the previous quarter due to Nickel volatility and higher prices more than compensated lower volumes. Aperam is a company, listed on the Amsterdam, Brussels, Paris, Madrid and Luxembourg stock exchanges and with facilities in Brazil, Belgium and France, which concentrates on the production of stainless steel and specialty steel. It was spun out of ArcelorMittal at the start of 2011; the facilities that became Aperam had about 27% by turnover of the stainless-steel market as of 2009. The Brazilian facility uses charcoal from a series of eucalyptus forests owned and managed by the group rather than coking coal to reduce the material; the European facilities use electric-arc furnaces fed with scrap. The Brazilian facilities of Aperam mostly correspond to Aperam South America, old Acesita, which was privatised by the Brazilian government in 1992 and purchased by Usinor in 1998. Usinor merged with Arbed and Aceralia to become Arcelor in 2001 and Aperam became a wholly owned subsidiary of ArcelorMittal in 2007 in the hostile takeover of state-owned enterprise Arcelor by Mr Lakshmi Mittal. As of June 2021, 40.83% of Aperam is owned by the Lakshmi Mittal family.
