Siderurgica Investimenti increases its revenues in 2018

Wednesday, 31 July 2019 11:14:49 (GMT+3)   |   Brescia
       

Siderurgica Investimenti, holding company of the Brescia-based long steel producer Alfa Acciai, closed 2018 with consolidated revenues of €942.7 million for the year, compared to €795 million in 2017. At the same time, it produced 1.7 million mt of steel, i.e., four percent more than in the previous year. However, its consolidated net profit amounted to €12.24 million, marking a setback compared to €59.85 million in 2017, when the company’s sale of a stake in the German company TSR had a positive impact. In 2018, the EBITDA of the group led by Amato Stabiumi and Ettore Lonati grew by 16 percent to €38.7 million, while investments rose by 32 percent to €27.5 million, both year on year.

"Despite the disappearance of the Algerian market and the fact that domestic demand has not even come close to pre-crisis levels, the group's path has reached new steps with the integration of entities acquired in recent years, such as former company Stefana based in Montirone, Brescia, and Tecnofil which has allowed direct entry into the wire drawing and galvanized sector," the company’s statement read. However, the 2018 financial results were weighed down by the restructuring of the Montirone site, as well as by the restructuring and consolidation process for Tecnofil, the statement added

Moreover the conditions in the Sicilian market, the playing field of subsidiary Acciaierie di Sicilia, are "still critical". The company has had to "search for other markets, not always equally profitable."

Siderurgica Investimenti pointed out that, although construction and public works have continued to suffer in the last ten years, the group has managed to accumulate resources of almost €100 million, bringing its debt almost to zero. This is why the company is looking ahead "with determination and confidence, also aiming at new initiatives and acquisitions", the company’s note reads. The first half of 2019 showed a further increase in profitability. “We must always be aware of the situation of overcapacity that represents a looming threat to the entire sector, and that prevents us from achieving that profitability which, given the potential and investments, would be desirable," the company concluded by saying.


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