In This Article:
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aperam SA (APEMY) has successfully reversed the slowdown caused by previous investments in Brazil and Europe, resulting in a stronger footprint and better product mix.
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The company announced the acquisition of Universal Stainless in the United States, which is expected to enhance its market position.
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Brazil operations have returned to full run rate, achieving maximum efficiency even in a low cycle.
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The Booster program is contributing positively to the company's financial performance, with a clear ramp-up in results.
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Aperam SA (APEMY) is focusing on differentiated products, reducing dependency on commodity markets and enhancing profitability.
Negative Points
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The market remains challenging with low levels of activity, impacting overall performance.
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Pricing pressures are expected to continue in both Europe and Brazil, affecting margins.
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Imports from Asia, particularly Taiwan, are increasing, posing a risk to local market share.
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The company faces potential risks from geopolitical factors, such as tariffs and trade defense measures.
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Economic conditions in key markets like Germany are showing signs of weakness, affecting demand.
Q & A Highlights
Q: Can you confirm the EUR250 per ton EBITDA in Europe and how it compares to previous quarters? A: Timoteo Di Maulo, CEO: The EUR250 per ton is a historical normal level. The markets remain low in activity, but Europe's contribution has been significant.
Q: Could you explain the one-offs in 2024 and their impact on 2025? A: Sudhakar Sivaji, CFO: Inventory valuation should balance out for the year. The main one-off was in Brazil, affecting the first two quarters, but this has smoothed out by Q3.
Q: What are the volumes shipped from Europe and Brazil to the US, and how do tariffs affect this? A: Timoteo Di Maulo, CEO: Most production is focused on domestic markets. The volumes shipped to the US are not significant, and current trade measures protect against the redirection of imports.
Q: Regarding the Universal Stainless acquisition, are there significant investment requirements? A: Timoteo Di Maulo, CEO: We will provide more details post-closing. Universal has invested well in the past, and no high investments are required for synergies.
Q: How do you assess the risk of imports and circumvention in Europe? A: Timoteo Di Maulo, CEO: Imports have been low due to trade defense measures. Current levels are normal, and any aggressive behavior from countries like Vietnam could prompt further action.