Madrid, Spain-based stainless steel producer Acerinox has posted its financial results for the first half of the current year. According to the figures provided, the net sales of the company for the year reached €2.4 billion, decreasing by 5.5 percent year on year. EBITDA for the first six months of 2011 declined by 35 percent to €165.9 million on year-on-year basis, but was double compared to the second half of 2011.
Acerinox's steel production for the given period, amounting to 1,177,398 mt, was up 10.6 percent compared to the first six months of the previous year, primarily as a result of the strength of the North American market. The company's cold rolling production was 736,886 mt in the first half, up by 12.6 percent compared to the first half year of 2011. The company said that it has utilised 89 percent of its total capacity to achieve these production levels. The increase in the utilisation of the company's capacity has affected all of its factories, and particularly North American Stainless, which is working at close to full capacity.
Acerinox noted that in the period in question the stainless steel market continued to be affected by the international economic crisis and its performance reflects the intensity of the crisis in each geographical region. The market recovered in the first quarter, but was hit again in the second quarter by macroeconomic factors which aggravated the effects of the weak performance of nickel. This rapid adjustment impeded surplus deliveries and the replenishment of inventories.
Acerinox did not give a forecast for the third quarter of this year, stating that the financial tensions and the uncertainty related to the global reach of the European crisis limit visibility. According to Acerinox, the level of prices is still very low and volumes will be affected by low seasonal activity.