In a display of resilience amidst challenging market conditions, Acerinox, a global leader in stainless steel and high-performance alloys, has reported a 13% improvement in its second-quarter EBITDA compared to the first quarter of 2024. This positive performance comes despite ongoing challenges in the stainless steel sector and a prolonged strike at its Acerinox Europa facility.
The company's EBITDA for the second quarter reached €125 million, up from €111 million in Q1. This increase was primarily driven by the strong performance of its North American subsidiary, North American Stainless (NAS), and the robust results from its high-performance alloys division, VDM Metals. The sales margin also saw a significant improvement, rising to 10% from 7% in the previous quarter.
Bernardo Velázquez, Chief Executive Officer of Acerinox, highlighted the company's strategic positioning in the American market and the high-performance alloys sector as key factors in offsetting the challenges faced in Europe. The nearly five-month strike at Acerinox Europa had a substantial impact, reducing the plant's EBITDA by €28 million in the second quarter alone. Despite this setback, the company's diversified portfolio and strong presence in North America have allowed it to maintain a positive trajectory.
Acerinox's financial health remains strong, with net financial debt reduced to €191 million, a 44% decrease from December 31, 2023. This reduction is attributed to strong cash generation, with operating cash flow for the first half of 2024 reaching €266 million. The company's focus on operational efficiency is evident in its Beyond Excellence Plan (2024-2026), which aims to improve EBITDA by €100 million over the three-year period.
In a significant strategic move, Acerinox has signed an agreement to acquire Haynes International, a leading U.S. company specializing in high-performance alloys. This acquisition, pending final regulatory approvals, is expected to strengthen Acerinox's position in the high-value specialty metals market. The transaction is anticipated to close in the fourth quarter of 2024, subject to approval from Austrian and UK competition authorities.
The resolution of the strike at Acerinox Europa marks a crucial turning point for the company. A new collective bargaining agreement, valid until December 31, 2027, has been signed, promising greater efficiency, flexibility, and diversification. The agreement includes a 13% wage increase over four years and introduces new production bonuses aligned with the Group's strategy to reward quality and product range expansion.
