Aperam (referred to as "Aperam" or the "Company") (Amsterdam, Luxembourg, Paris: (APAM) and NYRS: (APEMY)) today announced results for the three and twelve month periods ending December 31, 2010.
- Health and Safety frequency rate of 2.1x in 2010 (1.8x in 2009) and 1.0x in Q4 2010
- Shipments of 1,741 thousand tonnes in 2010 (1,447 thousand tonnes in 2009) and 366 thousand tonnes in Q4 2010
- EBITDA of USD 410 million in 2010 (USD 226 million in 2009) and of USD 22 million in Q4 2010
- Pro forma earnings per share of USD 1.64 in 2010 (loss per share of USD 1.54 in 2009)
- Pro forma cash flow from operations of USD 97 million in 2010 and USD 137 million in Q4 2010
- Pro forma net debt of USD 851 million at December 31, 2010 represented a gearing of 22% compared to USD 953 million at September 30, 2010
- Aperam launched an initiative, known as the "Leadership Journey" to target management gains and profit enhancement of USD 250 million over the next two years
- Volume and pricing are expected to improve in Q1 2011 compared to Q4 2010 resulting in a strong increase in EBITDA and working capital requirements. Net debt is expected to increase.
- Approximately USD 40 to USD 50 million of non-recurring charges expected in Q1 2011 as part of the implementation of the Leadership Journey
Commenting, Mr. Bernard Fontana, CEO of Aperam, said: "Following the successful spin-off of Aperam from ArcelorMittal, we are pleased to report our first financial results as a stand-alone company. Despite weakness at year end, we experienced improvement in the financial results of 2010 compared to 2009. Since the beginning of 2011, the market has shown signs of improvement, but pricing levels are expected to remain moderate throughout 2011 due to overcapacity in the industry. In an effort to enhance competitiveness, the Company has initiated the Leadership Journey, aimed at significantly increasing our level of profitability."