Italian group Danieli & C. Officine Meccaniche S.p.A. (Danieli), which operates in the plant-making field and also in special steel production through its subsidiary Acciaierie Bertoli Safau (ABS), has issued its financial results for the fiscal year 2017-18, ended June 30.
Accordingly, the given year ended as predicted, with improved turnover and EBITDA compared to FY 2016-17. EBITDA increased by 13 percent to €228.8 million, while group revenues rose by nine percent to €2.7056 billion, year on year. The group's net profit was €58.4 million, compared to the €50.5 million recorded in the previous fiscal year. In detail, turnover remained virtually unchanged in the plant-making segment, while it increased in the steelmaking segment, which also showed greater production volumes compared to FY 2016-17 thanks to the restart of ABS Sisak and in spite of the restructuring (now complete) of the EWS pipe mill, which in the current financial year will be able to operate with greater efficiency and profitability.
The plant-making segment continues to be affected by the serious crisis that steelmakers experienced in 2015, 2016 and 2017, which significantly reduced not only investments but also the purchase prices of new plants.
Danieli explained that at the end of 2017, thanks in part to antidumping measures, with duties applied first in the US and then gradually in Europe, together with the implementation of a quota-based system, US steel producers and then little by little steel producers in Europe and other countries saw demand and margins increase. Consequently, demand for new plants also increased, starting in the spring of 2018, while sale prices are still low due to the fierce competition from Germany and Japan.
The group's order book is well diversified according to geographical areas and product line, and for the year ended June 30, 2018, amounted to €2.954 million, compared to €2.532 million for the year ended June 30, 2017.
On the other hand, the steelmaking segment is showing excellent results, the steel market is stable, and consequently prospects are good. Products sold in the period by the steelmaking segment (ABS Group) reached about 1,280,000 metric tons by June 30, 2018, increasing by 20 percent year on year.
Danieli believes that in the next financial year both business segments could see an improvement, thanks also to the group's solid net financial position which remains high and stable.
The group said it will also continue to pursue competitiveness and products with high added-value, and to gradually improve its environmental impact and safety strategy.