Steel manufacturer Aperam saw its profits more than double in the third quarter of 2024, partly due to the strong performance of its Brazil business, higher prices, and the positive impact of a cost-saving and digitalisation programme.
Aperam is a leading steel manufacturer in Europe and South America, with six production facilities spread across Belgium (Genk and Châtelet), France and Brazil.
During the energy crisis in 2022, Aperam was one of several manufacturers in Belgium who were forced to temporarily shut down due to prohibitive electricity prices.
Last year, the company reported a turnover of more than €6.5 billion and shipped 2.2 million tonnes of steel.
'Significantly higher' profits last quarter
In the third quarter of 2024 Aperam reported an operating profit of €49 million, "significantly higher" than €19 million in the second quarter and a "marked improvement" compared to a loss of €36 million in the third quarter of last year.
Timoteo Di Maulo, CEO of Aperam, said that the summer quarter with its "seasonal trough" in Europe benefitted from Brazil "returning to smooth operations" after Aperam invested almost $120 million in upgrading its hot rolling mill.
"Despite a soft market environment, we have reached a historic normal profitability per ton as we leverage the capabilities of our modernised footprint resulting in a better product mix," said Di Maulo.
"Our focus is now on reducing net financial debt towards the end of the year as we prepare for consolidating Universal Stainless, which will open the US and the aerospace market for us," he added.
Related News
- More than 10,000 temporarily unemployed due to energy crisis
- Belgium's industrial production sees biggest decrease in the EU
- Spiralling energy costs force Belgian companies to shut down
Aperam's sales for the third quarter of 2024 reached €1.49 billion, down 8.6% compared to the previous quarter. 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. While there was negative seasonality in Europe, Brazil benefited from the full capacity of the new hot rolling mill.
Aperam's net financial debt sat at €641 million by 30 September, compared to €607 million at the end of June. The company said it expects earnings in the final quarter of 2024 to be "at a higher level" than the third quarter, and the company's net financial debt to "decrease till year end".
