Italian steelmaker Arvedi Group closed 2019 with a profit, with an improvement in financial debt and with an increase in production volumes, in spite of the "difficult year for global markets and for the European steel industry, which affected the margins of activities," as stated by the Cremona-based steel group in a note.
In 2019, the group's production volumes grew by 1.5 percent to around 4.3 million mt produced and sold, while revenues amounted to €2,760 billion, "despite competition, above all by Turkey and Russia, which, acting in a socio-economic and political context very different from the European one, have been carrying out dumping with devastating effects on the profitability of the European industry," Arvedi stated. Its gross operating margin (EBITDA) in 2019 stood at around €300 million, equal to 11 percent of revenues. The company explained that "two factors contributed to the result: an offer of products with higher margins and effective control of production costs, both the result of technological innovation and cutting-edge processes." Pre-tax profit was €108.4 million, down 59.8 percent year on year, while its net profit stood at €56.7 million, compared to €164.6 million in the previous year.
Its financial debt fell by €40 million year on year to €540.148 million. Also in 2019, the group "increased investments, amounting to €180 million, from a "green" perspective so as to confirm its competitiveness in markets and shortly achieve neutrality in CO2 emissions."
The investments mainly concerned projects aimed "at increasing the production capacity of the plants, at technological innovation interventions aimed at ensuring high quality standards of products, maximum safety levels for those who work there, and circular and environmentally sustainable production, as evidenced by obtaining the prestigious EMAS certification for Acciaieria Arvedi."
More specifically, in 2019 Arvedi "invested €180 million in tangible fixed assets of all consolidated companies, of which approximately €103 million related to Acciaieria Arvedi. In the 2007-19 period, Arvedi invested a total of €2.04 billion to modernize and relaunch the group companies (of which €1.3 billion was related to Acciaieria Arvedi Spa of Cremona)."