Aperam reports lower earnings and shipments in 2023 amid market crisis

AMSTERDAM: Aperam, a leading global stainless steel producer, announced its results for the full year and the fourth quarter of 2023, showing a decline in earnings and shipments due to the challenging market conditions.

The company reported an adjusted EBITDA of EUR 304 million in 2023, compared to EUR 1,129 million in 2022, a decrease of 73%. The adjusted EBITDA in the fourth quarter of 2023 was EUR 55 million, compared to EUR 19 million in the third quarter of 2023 and EUR 129 million in the fourth quarter of 2022.

The company’s shipments of stainless steel and alloys amounted to 2,198 thousand tonnes in 2023, a 5% decrease compared to 2,309 thousand tonnes in 2022. The shipments in the fourth quarter of 2023 were 534 thousand tonnes, compared to 513 thousand tonnes in the third quarter of 2023 and 554 thousand tonnes in the fourth quarter of 2022.

The company’s net income was EUR 203 million in 2023, compared to EUR 625 million in 2022, a decrease of 68%. The basic earnings per share were EUR 2.81 in 2023, compared to EUR 8.33 in 2022. The free cash flow before dividend and share buy-back amounted to EUR 168 million in 2023, compared to EUR 345 million in 2022.

The company’s net financial debt was EUR 491 million as of December 31, 2023, compared to EUR 468 million as of December 31, 2022, an increase of 5%.

The company also highlighted its strategic initiatives and prospects for the future. The company completed the fourth phase of its Leadership Journey®2, a program aimed at improving its operational efficiency and competitiveness, achieving gains of EUR 7 million in the fourth quarter of 2023 and a cumulative EUR 186 million over the period 2021 to 2023, exceeding its target of EUR 150 million.

The company also commented on the market situation and its outlook for the first quarter of 2024. The company said that the market improved slightly during the fourth quarter of 2023 but remains deeply depressed, with extreme margin pressure and low volumes reflecting an industrial recession in Europe. The company said that this crisis reveals how important the successful integration into raw materials has been for Aperam, as its Recycling & Renewables division was its largest earnings contributor for the first time in the fourth quarter of 2023. The company said that it expects its EBITDA in the first quarter of 2024 to be at a comparable level versus the fourth quarter of 2023, and that it guides for higher net financial debt in the first quarter of 2024.

Timoteo Di Maulo, CEO of Aperam, said: “The market improved slightly during the fourth quarter but remains deeply depressed. Extreme margin pressure persists and volumes reflect an industrial recession in Europe. This crisis reveals how important the successful integration into raw materials has been for Aperam. In Q4 the Recycling & Renewables division was Aperam’s largest earnings contributor for the first time. Entering 2024 Phase 5 of the Leadership Journey® – our self-help program started. With a clear focus on cost reduction we are convinced that our 2025 target remains valid and that Aperam will emerge from this crisis as a more resilient, more profitable and more cash generative Company.”

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