LONDON Spanish stainless steel producer Acerinox SA saw its earnings surge in the third quarter compared with a year earlier, the company said Oct. 31.
Earnings before interest, taxes, depreciation and amortization (Ebitda) totaled 37.6 million ($51.7 million), up from 8.7 million in the corresponding period a year earlier.
"Improvement in consumption and slight increases in prices make us cautiously optimistic," the company said, with signs of growth not only in Europe but in Asian and North American markets.
Apparent consumption of flat products grew 1.1 percent year on year, Acerinox said, mainly due to capital goods exports.
Higher activity alongside lower inventory levels allowed for price increases on stainless steel flat products, it added.
Acerinox also cited the success of its company-wide improvement plan as a reason for improved earnings.
Acerinox last year said it planned to save about 60 million per year in 2013 and 2014 through its Excellence Plan III. The financial statement shows that it was able to save 36 million in the first nine months of the plans execution.
Group-wide melt shop production fell 2.4 percent in the third quarter, however, to 509,800 tonnes from 522,200 tonnes. Acerinox said this was due to planned maintenance outages and new equipment installations.
Net sales dropped to 967 million ($1.33 billion) in the third quarter from 1.09 billion in the same 2012 period.
A version of this article was first published in AMM sister publication Steel First.