Spain’s Acerinox Expects Further Profit Rise in Q2 on Higher Steel Demand
“The good performance of industries related to consumer goods and consuming stainless steel as well as the situation of inventories, make us optimistic regarding the second quarter,” Acerinox said in a statement.
Its order portfolio was up 80% from a year ago and up 40% from the first quarter of 2019.
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Its first-quarter net profit rose to 78 million euros ($95 million) from 28 million euros a year earlier, the company said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 161 million euros from 85 million and the company said it expects that to rise in the second quarter.
Those results topped the net profit of 64 million and EBITDA of 143 million expected by analysts, Refinitiv Eikon data showed.
Acerinox shares were down 2.3% in early trading in Madrid.
The industrial rebound from the contraction last year triggered by the pandemic has boosted demand for raw materials such as steel.
Acerinox’s largest rival ArcelorMittal last week reported a decade-high profit for the first quarter and said it expected global demand for steel this year to grow by between 4.5% and 5.5%.
($1 = 0.8240 euros)
(Reporting by Inti Landauro; editing by Jason Neely)