Gränges increases sales volume, lowers carbon emissions intensity in Q1

Gränges, a Sweden-based supplier of rolled aluminum materials, has announced its financial results for the first quarter of 2024.

The company saw its sales volume increase to 122,000 metric tons in the quarter, up 1.5 percent from 120,200 metric tons in the first quarter of 2023, while its net sales decreased to 5,428 million Swedish kronor ($497.1 million) from 5,968 million Swedish kronor ($546.5 million). Its adjusted operating profit for the quarter of 2024 totaled 356 million kronor ($32.6 million) relative to 401 million kronor ($36.7 million) for the first quarter of 2023. Profit for the period was 237 million kronor ($21.7 million) compared with 254 million kronor ($23.3 million) year over year, while diluted earnings per share were 2.23 kronor (20 cents) compared with 2.38 kronor (22 cents) in the first quarter of last year.

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Gränges says its total carbon emissions intensity for the quarter  (Scopes 1, 2 and 3) decreased to 7.4 metric tons CO₂e per metric ton from 8.9 metric tons year over year, while recycled aluminum increased to 45.5 percent from 37.5 percent.

“In the first quarter 2024, market demand stabilized as downstream inventories gradually normalized in most sectors," Gränges President and CEO Jörgen Rosengren says. "Stable demand in automotive overall—and strong in Asia—and recovery in other markets compensated for lower-than-normal preseason shipments to HVAC customers. Our strong focus on market share gains helped drive a return to growth, and sales volume increased by 2 percent. It is very encouraging to see these first results of our intensified sales efforts.”

He adds that the company also accelerated its productivity to offset customer price pressure and wage inflation.

While also focusing on market share gain and productivity, Rosengren says Granges is executing its Navigate plan for long-term sustainable growth. 

“An important part in Navigate is to increase circularity and decrease our carbon footprint to make good on our commitment to net zero by 2040,” he continues. “In the first quarter, we achieved a 16 percent reduction of carbon intensity and an impressive 45 percent recycling rate. We’re quite proud of these new records.

“Such improvements do not happen by chance but are the result of hard, systematic work on many fronts. Our investments over the past years in recycling capabilities in all parts of Gränges enable larger recycling volumes and higher efficiency. Our technical and operational experts optimize alloys and production methods for new, circular aluminum solutions that maintain the high quality and performance required by our customers."  

The company also is building partnerships with customers and suppliers that share sustainability ambitions. “In the quarter, we deepened cooperation with aluminum recyclers in Europe and Americas, secured 100 percent renewable electricity for our operations in Newport and made good progress in our joint venture for low-carbon aluminum in China," Rosengren says. "I am convinced that these steps and others to come help build a strong competitive advantage for Gränges, today and in the future.”

Outlook

While Rosengren says end-customer markets remain difficult to predict, a more normal downstream inventory is expected to contribute to somewhat stronger customer demand in the second quarter 2024 than in the same period in 2023.

“In total, we currently expect sales volume for the second quarter to increase by a mid-to-high single-digit percentage year over year," he says, noting Gränges continues to focus on market share gain. "We also aim to continue offsetting any further price pressure and continued wage inflation with productivity.”

The company’s focus will continue to be on market share gain and productivity throughout 2024.

“At the same time, we will continue our long-term work to build a world-leading aluminum rolling and recycling company," Rosengren adds. "The return to growth with good profitability in the first quarter strengthens our confidence that we’re on the right way.”