Luxembourg-based stainless steel company, Aperam, has announced a fourth-quarter net profit despite a decline in sales. The company attributes this decline to ongoing margin pressures and a reflection of an industrial recession in Europe.
Q4 Profit and Sales Figures
Aperam recorded a net profit of €70 million ($75.4 million) for the quarter ending December 31, compared to a “nil” net profit result in the prior-year period. However, sales experienced a 4% decline, totaling €1.56 billion.
Annual Net Profit Decrease
For the whole year, Aperam reported a net profit of €203 million, down from €625 million in the previous year.
Increase in Shipments
Despite the decline in sales, Aperam saw an increase in shipments during the fourth quarter. Shipments reached 541,000 tons, compared to 493,000 tons in the prior-year period. This increase was primarily driven by a seasonal upswing in Europe and minimal production disruptions.
Unsatisfactory Shipment Volumes
Despite the growth in shipments, Aperam expressed dissatisfaction with shipment volumes, revealing a 4.8% decline in 2023 when compared to the previous year.
Decrease in Average Selling Price
Aperam also noted a decrease in its average selling price for 2023. The price fell to €3,000 per ton, down from €3,500 per ton in 2022.
Outlook for the First Quarter
Looking ahead to the first quarter, Aperam expects its earnings before interest, taxes, depreciation, and amortization to be at a comparable level to the €44 million achieved in the fourth quarter.