from APERAM (isin : LU0569974404)
Aperam - Third quarter 2024 results: “Footprint upgrade starts to make a positive impact”
Aperam S.A. / Key word(s): Quarter Results Third quarter 2024 results1
“Footprint upgrade starts to make a positive impact”
Luxembourg, November 8, 2024 (07:00 CET) - Aperam S.A. (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris, Brussels: APAM, NYRS: APEMY), announced today results for the three months ended September 30, 2024. Highlights
Strategic initiatives
Prospects[1]a
Financial Highlights (on the basis of financial information prepared under IFRS)
Health & Safety results
Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate was 2.4x in the third quarter of 2024 compared to 2.0x in the second quarter of 2024.
Financial results analysis for the three-month period ending September 30, 2024 Sales for the third quarter of 2024 decreased by 8.6% at EUR 1,493 million compared to EUR 1,634 million for the second quarter of 2024. Shipments increased by 5.5% at 617 thousand tonnes in the third quarter of 2024 compared to 583 thousand tonnes in the second quarter of 2024, due to negative seasonality in Europe while Brazil benefited from the full capacity of the new hot rolling mill.
Adjusted EBITDA reached EUR 99 million (excluding an exceptional gain of EUR 8 million made of PIS/Cofins tax credits related to prior periods recognized in Brazil) during the third quarter 2024 compared to EUR 86 million (excluding an exceptional loss of EUR (8) million, related to a voluntary redundancy program) in the second quarter of 2024. Higher results in Stainless & Electrical Steel with a strong development in Brazil, higher prices and the positive impact from the Leadership Journey® could more than compensate for a negative inventory valuation effect and lower steel volumes.
Depreciation and amortization expense was EUR (58) million for the third quarter of 2024.
Aperam had an operating income for the third quarter of 2024 of EUR 49 million compared to an operating income of EUR 19 million for the previous quarter.
Financing costs, net, including the FX and derivatives result for the third quarter of 2024 were EUR (12) million. Cash cost of financing was EUR (8) million during the quarter.
Income tax benefit was EUR 142 million during the third quarter of 2024, due to the recognition of net deferred tax assets on tax losses carried forward for EUR 155 million.
The net result recorded by the Company was an income of EUR 179 million for the third quarter of 2024, compared to an income of EUR 59 million for the second quarter of 2024. Cash flows from operations for the third quarter of 2024 were EUR 33 million, including a working capital increase of EUR 100 million. CAPEX for the third quarter was EUR (22) million.
Free cash flow before dividend for the third quarter of 2024 amounted to EUR 9 million, compared to EUR 111 million for the second quarter of 2024. During the third quarter of 2024, cash returns to shareholders amounted to EUR 36 million, consisting fully of dividend.
Operating segment results analysis
Stainless & Electrical Steel (1)
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