Acerinox doubles profits but warns of low demand | comp

Acerinox doubled the result for the first nine months of the year compared to 2021, with a net result of €741 million. The steel business increased its turnover by 47% to 6,966 million euros, despite a 10% decrease in total production and an increase in EBITDA to 1,186 million (77%). However, the numbers were lower than expectations. According to Bloomberg, analysts expected a quarterly result of 250 million (there were 241) and Ebtida in the same period of 141 million (Acerinox reported 133).

The company warned of weak demand once the companies that supply it finish the process of rebuilding stocks after the problems of previous quarters. “The change in our clients’ expectations has led to higher stocks in most markets, and the initiation of a settlement process, which we hope will conclude at the beginning of 2023,” CEO Bernardo Velasquez notes in a press note.

Expectations are that this process will continue into the fourth quarter, as Acerinox expects inventory cuts will continue to be felt and Ebitda will be, the company notes, worse than it was in the third quarter. Overall, he adds, it will be the best result in Acerinox history. The company expects an improvement in the situation in 2023 when the inventory adjustment is completed.

Acerinox has also advanced that it will propose to shareholders a dividend of 0.6 euros per share, which is 20% more than the 0.5 euros paid in 2022 and charged through 2021. The company traditionally makes a one-time payment in July. The company also indicated that it covered two-thirds of its share repurchase program that began in August, which expects to purchase 4% of the capital and subsequently amortize it.