Aperam reports 3Q income decline

Aperam reports 3Q income decline
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Luxembourg-based stainless steel producer Aperam has reported third quarter results that included reduced shipments, lower revenue and net income nearly 70 percent lower compared with the prior quarter.

The metals producer, which on its website says it uses 80 percent scrap content on average at its mills in Belgium, Brazil and France, said its sales for this year’s third quarter decreased by 26 percent at about $18.5 billion compared to $25 billion million in the prior quarter.

The company’s shipments decreased 20 percent from 635,000 metric tons in the second quarter of 2022 to 508,000 metric tons in the third. Aperam cites “pronounced destocking by customers in Europe” for the reduction.

Reduced sales and shipments also led to reduced income in the third quarter. Aperam has reported net income of about $123 million in the third quarter, down nearly 62 percent from the $322.5 million earned the prior quarter.

The company’s Recycling & Renewables unit, which includes global stainless steel scrap processor and trader ELG and furnace dust and sludge recycling company Recyco, had third quarter sales of $476 million for the third quarter of 2022, representing a 41 percent decrease from the prior quarter. “Shipments decreased by 23 percent during the third quarter of 2022,” says the company, while average selling prices dropped by 22 percent in its scrap and recycling operations.

Timoteo Di Maulo, CEO of Aperam, says conditions in Europe have been particularly challenging for the company. “Aperam’s differentiated value chain and stable operations in Brazil enabled us to generate solid results and considerable free cash flow in the third quarter. We achieved this despite a pronounced inventory cycle and energy challenges in Europe.”

Adds Di Maulo, “Our de-levered balance sheet, the good progress of the Leadership Journey Phase 4 that contributes towards our 2025 targets and our unique synergistic value chain, make us confident in addressing the challenges ahead.“

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Source: Recycling Today
Aperam reports 3Q income decline
<![CDATA[Luxembourg-based stainless steel producer Aperam has reported third quarter results that included reduced shipments, lower revenue and net income nearly 70 percent lower compared with the prior quarter.The metals producer, which on its website says it uses 80 percent scrap content on average at its mills in Belgium, Brazil and France, said its sales for this year’s third quarter decreased by 26 percent at about $18.5 billion compared to $25 billion million in the prior quarter.The company’s shipments decreased 20 percent from 635,000 metric tons in the second quarter of 2022 to 508,000 metric tons in the third. Aperam cites “pronounced destocking by customers in Europe” for the reduction.Reduced sales and shipments also led to reduced income in the third quarter. Aperam has reported net income of about $123 million in the third quarter, down nearly 62 percent from the $322.5 million earned the prior quarter.The company’s Recycling & Renewables unit, which includes global stainless steel scrap processor and trader ELG and furnace dust and sludge recycling company Recyco, had third quarter sales of $476 million for the third quarter of 2022, representing a 41 percent decrease from the prior quarter. “Shipments decreased by 23 percent during the third quarter of…