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Acerinox Reports Results for H1 of 2020

Steel News - Published on Thu, 13 Aug 2020

Image Source: Acerinox COVID19
Acerinox ended the first half of 2020 with a turnover of EUR 2,331 million (5% down on that of the first half of 2019), an adjusted EBITDA of EUR 179 million (-4% compared to the same period in 2019), and at 30 June had immediate liquidity amounting to EUR 1,734 million (EUR 277 million at the end of the first quarter). The Group has achieved these results, despite the fall in prices and the decrease in activity resulting from Covid-19, thanks to the Group’s swift reaction to the crisis that resulted in efficient management of costs (fixed and variable) and the integration of VDM Metals, as well as sound performance in the US. Cost cutting has been applied especially to the stainless steel division.

Net profit for the first half of 2020, after tax and minority interests, totalled EUR 2 million (87% down compared to the first half of 2019), and was adjusted by an impairment of EUR 43 million on the assets in Bahru Stainless, which took place during the second quarter.

The effects of the pandemic were significant during the second quarter, leading to a 26% decrease in melting shop production compared to the first quarter. Even in this complicated context, adjusted EBITDA and turnover increased by 11% and 1%, respectively.

Outlook - Like the rest of the economy, the global stainless steel market is being severely affected by the situation created by the Covid-19 pandemic. The implications are not consistent among continents, or even among neighbouring countries, making the outlook extremely difficult in a global market like ours. As a result of the aforementioned, and due to the complexity and length of the economic activity reactivation process, only a short-term perspective can be offered.

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Posted By : Yogender Pancholi on Thu, 13 Aug 2020
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