Acerinox says US mill helped its results in Q2

The Acerinox Group, which operates stainless steel and alloys mills in Europe and the United States, reports improved results in the second quarter of 2024 compared with the first quarter thanks to the increase in margins at the recycled-content North American Stainless (NAS) mill in Ghent, Kentucky.

The Madrid-based company cites the strength of its high-performance alloys division as another reason for its improved profitability.

Hurting the company's financial performance were the effects of a strike at Acerinox Europa plant in Spain, which was tentatively settled in late June.

“The first half of the year was characterized by solid earnings before interest, taxes, depreciation and amortization (EBITDA) and good cash generation despite [the] strike at Acerinox Europa,” the company says.

Comparing this year’s second quarter with the first, Acerinox's EBITDA of $135.6 million in the second quarter was 13 percent higher than what it achieved in the first quarter. However, this year’s earnings were 47 percent lower compared with the second quarter of 2023.

Acerinox says results in its high-performance alloys division in its most recently completed quarter were good, with EBITDA of nearly $37 million representing a 9 increase from the prior quarter.

“The strength of our North American subsidiary, North American Stainless (NAS), and the high-performance alloys division has enabled the group to improve second-quarter EBITDA over the previous quarter despite the challenging market conditions of the stainless steel sector and the nearly five-month strike at Acerinox Europa,” Acerinox Group CEO Bernardo Velázquez says.

“Our position in the American and high-performance alloys markets, and the gradual recovery in Acerinox Europa, allow us to expect an EBITDA in the third quarter similar to that of the second quarter.”

Acerinox portrays a capital expenditures picture that is aligning with the sectors currently experiencing profitability.

“The investment plan for the NAS factory, the only integrated stainless steel mill in the United States, is advancing on schedule,” the company says. “The structure for the melting shop expansion is under construction, the foundation works for the cold rolling mill are being carried out, and the first deliveries of equipment have been received.”

The metals producers says investment projects at its VDM Metals alloys business unit, announced this January, will increase its production capacity in the high-performance alloys division and those projects remain on track in terms of schedule and budget. All additional capacity is expected to be available by 2027.

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Also in the alloys subsector, Acerinox's move to acquire U.S.-based Haynes International, announced this February, only awaits the approval of the Austrian and United Kingdom competition authorities, which are expected to issue their decisions during the fourth quarter.