Cost reduction helps Acerinox to post profit for H1

Wednesday, 05 August 2020 15:11:57 (GMT+3)   |   Istanbul
       

Spanish stainless steel producer Acerinox S.A. has reported a net profit of €2 million for the first half of the current year, decreasing by 97 percent compared to a net profit of €69 million in the corresponding period of 2019, while its net sales came to €2.33 billion, down five percent year on year. The company also said EBITDA in the given period fell by 12 percent year on year to €165 million.

The company has achieved these results, despite the fall in prices and the decrease in activity resulting from Covid-19, thanks to the swift reaction to the crisis that resulted in efficient management of costs and the integration of VDM Metals, as well as sound performance in the US. Cost cutting has been applied especially to the stainless steel division.

In the first half, the company's crude steel production decreased by 13 percent year on year to 1.04 million mt.

Acerinox forecasts that the remainder of 2020 will continue to be very challenging. The company stated that it acted decisively to take out costs and further boost liquidity in the second quarter and will continue to focus on the operating performance and capital allocation.


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