Aperam : Full year and fourth quarter 2012 results[1]

            Aperam : Full year and fourth quarter 2012 results[1]

 Luxembourg, February 4, 2013
Aperam (referred to as "Aperam" or the "Company") (Amsterdam, Luxembourg,
Paris: APAM and NYRS: APEMY), today announced results for the three month and
twelve month periods ending December 31, 2012

Highlights

  *Health and Safety frequency rate^[2] of 1.3x in 2012 compared to 0.7x in
    2011

  *Shipments of 1,683 thousand tonnes in full year 2012, a 4% decrease
    compared to full year 2011 

  *EBITDA^[3] of USD 214 million in full year 2012, compared to USD 356
    million in full year 2011

  *Basic loss per share of USD 1.39 in 2012

  *Cash inflow from operations amounted to USD 278 million in 2012 

  *Net debt of USD 816 million at December 31, 2012, representing a gearing
    of 26%, compared to a net debt of USD 878 million at December 31, 2011

Prospects



  *EBITDA in Q1 2013 is expected to improve compared to Q4 2012. Due to
    higher activity, net debt is expected to increase in Q1 2013 compared to
    Q4 2012 

Plan 2013-2014



  *Expansion of Leadership Journey® to 2014. USD 150 million targeted over
    next 2 years

  *Dividend stopped to accelerate net debt reduction. Target of net debt of
    USD 650 million by the end of 2014

Philippe Darmayan, CEO of Aperam, commented:

"In a  difficult environment  Aperam has  been able  in 2012  to  successfully 
progress with its Leadership Journey^® and reduce its net debt.
Looking ahead ,we continue to remain cautious considering the current  general 
environment and  industry volatility  despite some  positive signs  of  market 
improvement.

We have decided to expand our Leadership Journey^® and accelerate our net debt
reduction to be in a good position to capture industry opportunities."

Financial Highlights (on the basis of IFRS)

(USDm) unless otherwise stated 12M '12 12M '11 Q4 '12 Q3 '12 Q4 '11
Sales                           5,261   6,345  1,294  1,207  1,436
EBITDA                           214     356     43     42     53
Operating (loss) income         (106)    45     (45)   (29)   (29)
Net loss                        (108)   (60)    (52)   (17)   (46)
Steel shipments (000t)          1,683   1,749   407    410    429
EBITDA/tonne (USD)               127     204    106    102    124
Basic loss per share (USD)      1.39   0.76   0.68   0.21   0.57




Health & Safety results analysis

Health  and  Safety  performance,  based  on  Aperam  personnel  figures   and 
contractors lost time injury frequency rate2,  was 1.9x in the fourth  quarter 
of 2012 compared to 1.3x in the third quarter of 2012.

Financial results analysis

Sales in the  fourth quarter  of 2012  increased by  7% to  USD 1,294  million 
compared to USD 1,207 million in the  third quarter of 2012. Shipments in  the 
fourth quarter  of 2012  were flat  at  407 thousand  tonnes compared  to  410 
thousand tonnes in the third quarter of 2012.        

EBITDA was USD 43 million in the fourth quarter of 2012 compared to EBITDA  of 
USD 42  million  in the  third  quarter  of 2012.  Despite  difficult  market 
conditions, EBITDA was flat  quarter versus quarter primarily  as a result  of 
the continuing  progress  of  the  Leadership  Journey^®^[4].  The  Leadership 
Journey^® has contributed  USD 276 million  to EBITDA since  the beginning  of 
2011.

Depreciation and impairment expense in the  fourth quarter of 2012 was USD  88 
million, including USD 14 million of impairment relating to damaged assets in
Gueugnon.

Aperam had an operating loss in the fourth quarter of USD 45 million  compared 
to an operating loss of USD 29 million in the previous quarter. 

Net interest expense and other financing  costs in the fourth quarter of  2012 
were USD 19 million, including financing  costs of USD 19 million.  Unrealized 
foreign exchange  and derivative  losses  were USD  4  million in  the  fourth 
quarter of 2012.  

The Company recorded a net loss of USD 52 million, inclusive of an income  tax 
benefit of USD 15 million, in the fourth quarter of 2012.  

Cash flows  from operations  in the  fourth quarter  were a  positive USD  221 
million, with a  working capital  decrease of USD  213 million.  CAPEX in  the 
fourth quarter was USD 37 million. 

As of December 31,  2012, shareholder's equity was  USD 3,190 million and  net 
financial debt was USD  816 million (gross financial  debt as of December  31, 
2012 was USD 1,042 million and cash & cash equivalents were USD 226 million).

The Company  had  liquidity  of USD  701  million  as of  December  31,  2012, 
consisting of cash and cash equivalents (including short-term investments)  of 
USD 226 million and undrawn credit lines^[5] of USD 475 million.   

Operating segment results analysis

Stainless & Electrical Steel

The Stainless & Electrical Steel segment had sales of USD 1,020 million in the
fourth quarter of 2012. This represents  an increase of 10% compared to  sales 
of USD 930 million in the third  quarter of 2012. Shipments during the  fourth 
quarter were 400 thousand tonnes, including 249 thousand tonnes in Europe  and 
151 thousand tonnes in South  America. This is an  increase of 8% compared  to 
shipments in the previous quarter of 370 thousand tonnes (219 thousand  tonnes 
in Europe and 151 thousand tonnes in South America). Volume increased of  14% 
in Europe whereas volumes were flat in South America due to seasonal slowdown.
Overall, average steel  selling prices  for the Stainless  & Electrical  Steel 
segment were slightly lower for the quarter.

The segment  had EBITDA  of  USD 35  million in  the  fourth quarter  of  2012 
compared to USD 14  million in the  third quarter of  2012. EBITDA from  South 
America decreased from USD 26 million in  the third quarter of 2012 to USD  24 
million in the fourth quarter of 2012. The decrease in EBITDA in South America
was primarily due to the seasonality  impact but was partially offset by  some 
positive mix improvement. EBITDA from  Europe increased from negative USD  12 
million in the third quarter of 2012 to positive USD 11 million in the  fourth 
quarter of 2012. The improvement in EBITDA in Europe was primarily driven by a
reduced seasonality, the  impact from  some positive price  movements and  the 
continuing progress of the Leadership Journey®. 

The Stainless  & Electrical  Steel segment  had an  operating loss  of USD  42 
million during the fourth quarter of 2012 compared to an operating loss of USD
43 million in the third quarter of 2012. Depreciation and amortization expense
was USD 77 million in the fourth quarter of 2012, including USD 14 million  of 
impairment relating to damaged assets in Gueugnon.  

Services & Solutions

The Services & Solutions segment had a 4% decrease in sales during the period,
from USD 526 million in  the third quarter of 2012  to USD 504 million in  the 
fourth quarter of  2012. In  the fourth quarter  of 2012,  shipments were  158 
thousand tonnes compared to 165 thousand  tonnes in the previous quarter.  The 
Services & Solutions segment  had slightly higher  average selling prices  for 
the period.   

The segment had negative EBITDA in the fourth quarter of 2012 of USD 4 million
compared to positive EBITDA of USD 9 million in the third quarter of 2012. The
decrease in EBITDA was  primarily driven by losses  in the precision  business 
units and some underperforming  service centres. In  the third quarter,  there 
was a USD 8 million capital gain resulting from the disposal of assets related
to the key Leadership Journey^® project of Campinas.

Depreciation and amortization expense in the fourth quarter of 2012 was USD  7 
million. 

The Services & Solutions segment  had an operating loss  of USD 11 million  in 
the fourth quarter of 2012 compared to an operating income of USD 2 million in
the third quarter of 2012.  

Alloys & Specialties

The Alloys & Specialties segment  had sales in the  fourth quarter of 2012  of 
USD 170 million, representing an increase  of 22% compared to USD 139  million 
in the third quarter of 2012. Shipments  were higher in the fourth quarter  of 
2012 at 9 thousand tonnes compared to  8 thousand tonnes in the third  quarter 
of 2012, while average selling prices also increased quarter over quarter. 

The Alloys &  Specialties segment  achieved EBITDA of  USD 13  million in  the 
fourth quarter of  2012 compared to  USD 16  million in the  third quarter  of 
2012. Despite higher volumes, EBITDA was  down in the fourth quarter  compared 
to the third quarter primarily as a result of the mix deterioration.

Depreciation and amortization expense in the quarter was USD 2 million. 

The Alloys & Specialties segment had operating income of USD 11 million in the
fourth quarter of 2012 compared to operating  income of USD 15 million in  the 
third quarter of 2012. 

Recent developments

  *On November 8, 2012,  Moody's downgraded the  corporate family rating  for 
    Aperam S.A.  to B1  from Ba3.  Moody's maintained  the company's  negative 
    outlook. 

  *On November 30, 2012, S&P lowered the long term corporate credit rating on
    Aperam to 'B+' from 'BB-'. S&P maintained its negative outlook on Aperam.

  *On December 19, 2012, Aperam announced its financial calendar for the year
    2013.

  *On December 23,  2012, an accidental  fire damaged the  RD79 pickling  and 
    annealing line at the Gueugnon  plant in France. Aperamis mitigating  the 
    resulting productionfallout bystepping up production at its other active
    pickling and annealing lines  and has in  addition decided to  temporarily 
    relaunch  two   production  lines   at  its   plants  in   Genk,   Belgium 
    (BUL1)andIsbergues, France (Inox3) which were kept as capacity  reserve. 
    With these measures, Aperam will be able to supply its customers while the
    RD79 line is  being rebuilt.  The RD79 line  is expected  to be  restarted 
    before the second half of the year 2013.

New developments

  *On February 4,  2013, Aperam announces  that the Board  of Directors  will 
    submit to a  shareholder's vote,  at the  next annual  general meeting,  a 
    proposal to stop the dividend payment to accelerate the net debt reduction
    target of USD 650 million by the end of 2014. Capex is also expected to be
    reduced in full year 2013 compared  to full year 2012 and concentrated  on 
    security, environment and cost reduction.  

  *On February 4,  2013, Aperam  announces that  in response  to the  current 
    economic uncertainty  and  in a  continuing  effort to  improve  its  cost 
    competitiveness and profitability, the Company targets an expansion of the
    Leadership Journey® to 2014 with USD 150 million targeted over the next  2 
    years. This expansion of the  Leadership Journey® in combination with  the 
    achievements realized under the previous Leadership Journey® target of USD
    350 million by 2013 leads to a  new combined target of USD 425 million  by 
    2014. 

  *On February 4,  2013, Aperam  announces that it  obtained an  in-principle 
    refinancing commitment  to extend  a portion  of 600  million USD  of  its 
    current Secured Borrowing Base Revolving  Credit Facility from March  2014 
    until March 2015.

Investor conference call

Aperam management will host a conference call for members of the investment
community to discuss the full year and fourth quarter 2012 financial
performance at the following time: 

          Date            New York London  Luxembourg
Monday, February 4, 2013 12:30 pm 5:30 pm  6:30 pm

The dial-in numbers for the call are: France (+33(0)1 70 48 01 66 and toll
free 0805 631 579); USA (+1212 444 0896 and toll free 1 877 249 9037); and
international (+44(0)20 7784 1036). The participant access code is: 7144327#.

A replay of the conference call will be available until February 11, 2013:
France (+33 (0) 1 74 20 28 00); USA (+1 347 366 9565) and international (+44
(0) 20 3427 0598). The participant access code is 7144327#.

Contacts

Corporate Communications / Jean Lasar:+352 27 36 27 27
Investor Relations / Laurent Beauloye: +352 27 36 27 36

About Aperam

Aperam is a global player in  stainless, electrical and specialty steel,  with 
operations in  more than  30 countries.  The business  is organized  in  three 
divisions: Stainless &  Electrical Steel,  Services & Solutions  and Alloys  & 
Specialties.

Aperam has 2.5 million tonnes of  flat stainless steel capacity in Brazil  and 
Europe and is a leader  in high value added  niches - alloys and  specialties. 
Aperam has a highly integrated  distribution, processing and services  network 
and a  unique capability  to produce  stainless and  specialty from  low  cost 
biomass (charcoal). Its industrial network is concentrated in six main  plants 
located in Brazil, Belgium and France. Aperam has about 9,800 employees.

Aperam commits to operate in a responsible way with respect to health,  safety 
and the well-being of its employees, contractors and the communities in  which 
it operates.  It  is also  committed  to  the sustainable  management  of  the 
environment and of finite resources. In  2012, Aperam had revenues of USD  5.3 
billion and shipments of 1.68 million tonnes.

For further information, please refer to our website at www.aperam.com

Forward-looking statements

This document may contain forward-looking information and statements about
Aperam and its subsidiaries. These statements include financial projections
and estimates and their underlying assumptions, statements regarding plans,
objectives and expectations with respect to future operations, products and
services, and statements regarding future performance. Forward-looking
statements may be identified by the words "believe," "expect," "anticipate,"
"target" or similar expressions. Although Aperam's management believes that
the expectations reflected in such forward-looking statements are reasonable,
investors and holders of Aperam's securities are cautioned that
forward-looking information and statements are subject to numerous risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of Aperam, that could cause actual results and developments to differ
materially and adversely from those expressed in, or implied or projected by,
the forward-looking information and statements. These risks and uncertainties
include those discussed or identified in Aperam's filings with the Luxembourg
Stock Market Authority for the Financial Markets (Commission de Surveillance
du Secteur Financier). For more information about these risks and
uncertainties, the reader is encouraged to refer to page 5 of Aperam's interim
financial report for the half year ended June 30, 2012 filed on July 31, 2012.
Aperam undertakes no obligation to publicly update its forward-looking
statements or information, whether as a result of new information, future
events, or otherwise.

APERAM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

    (in million of U.S.     December 31,   September 30,   December 31, 
         dollars)                2012           2012          2011
                                                     
Non current assets                    3,992             3,954          4,156
                                                     
Intangible assets                     859             854          904
Property, plant and                                  
equipments                            2,609             2,621          2,804
                                                     
Investments & Other                   524             479          448
Current assets & working                             
capital                               967             1,205          1,199
Inventories, trade
receivables & trade                                  
payables                              607             831          807
                                                     
Other assets                          134             146          145
                                                     
Cash & cash equivalents               226             228          247
                                                     
Shareholders' equity                  3,190             3,218          3,443
                                                     
Group share                           3,186             3,214          3,437
                                                     
Non-controlling interests             4             4          6
                                                     
Non current liabilities               1,001             954          1,020
Interest bearing                                     
liabilities                           607             559          587
                                                     
Deferred employee benefits            169             171          174
                                                     
Provisions and other                  225             224          259
Current liabilities                                  
(excluding trade payables)            768             987          892
Interest bearing                                     
liabilities                           435             656          538
                                                     
Other                                 333             331          354

APERAM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in million of U.S.          Three Months Ended               Year Ended
      dollars)        December    September   December    December   December
                      31, 2012    30, 2012    31, 2011    31, 2012   31, 2011
                                                   
Sales                     1,294      1,207    1,436     5,261    6,345
                                                   
EBITDA                     43       42     53      214     356
Depreciation &                                     
impairment                 88       71     82      320     311
                                                  
Operating (loss) /                                   
income                   (45)     (29)      (29)     (106)     45
                                                               
Income from other                                  
investments                1      -          1           2          2
Net interest expense                              
and other net                                        
financing costs          (19)     (12)      (27)     (64)   (124)
Unrealized foreign
exchange and                                                   
derivative gains /                                    
(losses)                 (4)       8          2        (4)      (30)
Loss before taxes                                 
and non-controlling                                  
interests                (67)     (33)      (53)     (172)   (107)
                                                  
                                                   
Income tax benefit         15       16          8      64     48
Loss before                                                         
non-controlling                                        
interests                (52)     (17)      (45)     (108)      (59)
                                                               
Non-controlling                                    
interests                 -      -          1          -          1
                                                                    
                                                       
Net loss                 (52)     (17)      (46)     (108)      (60)

APERAM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in million of U.S.          Three Months Ended               Year Ended
      dollars)        December    September   December    December   December
                      31, 2012    30, 2012    31, 2011    31, 2012   31, 2011
                                                                    
                                                       
Net loss                 (52)     (17)      (46)    (108)      (60)
                                                               
Non-controlling                                    
interests                 -      -          1          -          1
Depreciation and                                   
impairment                 88       71     82      320     311
Change in working                                  
capital                    213     (96)     253      156     34
                                                               
                                                         
Other                    (28)     (8)      (63)       (90)      (97)
Net cash provided by
(used in) operating                                
activities                 221     (50)     227      278     189
Purchase of                                       
property, plant and                                  
equipment (CAPEX)        (37)     (41)      (51)    (161)   (158)
                                                         
Loans under cash                                   
pooling arrangements      -      -         -          -     647
                                                               
Other investing                                    
activities (net)          -       7          2           3          9
Net Cash (used in)                                
provided by                                          
investing activities     (37)     (34)      (49)    (158)     498
(Payments) proceeds
from payable to                                               
banks and long term                                  
debt                     (176)       92   (212)       (83)     55
Repayments under                                         
cash pooling                                       
arrangements              -      -         -          -   (540)
                                                               
                                                         
Dividends paid           (15)     (17)      (17)       (61)      (61)
                                                               
Other financing                                       
activities (net)          -       1       (2)        (2)       (6)
Net cash (used in)
provided by                                        
financing activities     (191)       76   (231)    (146)   (552)
Net (decrease)                                           
increase in cash and                                   
cash equivalents         (7)     (8)      (53)       (26)     135
                                                               
Effect of exchange                                   
rate changes on cash       5       1       (2)           5       (8)
                                                         
Change in cash and                                     
cash equivalent          (2)     (7)      (55)       (21)     127

Appendix 1a - Health & Safety statistics

    Health & Safety              Three Months Ended             Year Ended
      Statistics        December 31, September 30, December  December December
                            2012         2012      31, 2011 31, 2012 31, 2011
    Frequency Rate          1.9           1.3         0.3      1.3      0.7

Lost time injury frequency rate equals lost time injuries per 1,000,000 worked
hours, based on own personnel and contractors

Appendix 1b - Key operational and financial information

    Year Ended      Stainless &  Services &    Alloys &     Others &
 December 31, 2012   Electrical   Solutions  Specialties  Eliminations  Total
                     Steel^1,2
Operational
information
Steel Shipment
(000t)                    1,611        661          36         (625) 1,683
Steel selling price
(USD/t)                   2,489      3,148      17,405               2,991
Financial
information
Sales (USDm)              4,180      2,173         659       (1,751) 5,261
EBITDA (USDm)               118         21          56           19   214
Depreciation &
Impairment (USDm)          268         29           6           17   320
Operating (loss) /
income (USDm)              (150)         (8)          50            2  (106)
Note 1: Stainless & Electrical Steel Shipments of 1,611kt of which 617kt were
from South America and 994kt were from Europe
Note 2: Stainless & Electrical Steel EBITDA of USD 118m of which USD 103m were
from South America and USD 15m were from Europe

    Year Ended      Stainless &  Services &    Alloys &     Others &
 December 31, 2011   Electrical   Solutions  Specialties  Eliminations  Total
                     Steel^1,2
Operational
information
Steel Shipment
(000t)                    1,675        662          37         (625) 1,749
Steel selling price
(USD/t)                   2,903      3,764      18,805               3,475
Financial
information
Sales (USDm)              5,068      2,603         721       (2,047) 6,345
EBITDA (USDm)               221         15          70           50   356
Depreciation &
Impairment (USDm)           260         33           6           12   311
Operating (loss) /
income (USDm)               (39)        (18)          64           38    45
Note 1: Stainless & Electrical Steel Shipments of 1,675kt of which 647kt were
from South America and 1,028kt were from Europe
Note 2: Stainless & Electrical Steel EBITDA of USD 221m of which USD 118m were
from South America and USD 103m were from Europe

   Quarter Ended     Stainless &  Services &    Alloys &     Others &
 December 31, 2012    Electrical   Solutions  Specialties  Eliminations Total
                      Steel^1,2
Operational
information
Steel Shipment
(000t)                       400        158           9        (160)   407
Steel selling price
(USD/t)                    2,417      3,066      18,436              3,009
Financial
information
Sales (USDm)               1,020        504         170        (400) 1,294
EBITDA (USDm)                 35         (4)          13          (1)    43
Depreciation &
Impairment (USDm)            77          7           2           2    88
Operating (loss) /
income (USDm)                (42)        (11)          11          (3)   (45)
Note 1: Stainless & Electrical Steel Shipments of 400kt of which 151kt were
from South America and 249kt were from Europe
Note 2: Stainless & Electrical Steel EBITDA of USD 35m of which USD 24m were
from South America and USD 11m were from Europe

   Quarter Ended     Stainless &  Services &    Alloys &     Others &
 September 30, 2012   Electrical   Solutions  Specialties  Eliminations Total
                      Steel^1,2
Operational
information
Steel Shipment
(000t)                       370        165           8        (133)   410
Steel selling price
(USD/t)                    2,423      3,060       16,962              2,830
Financial
information
Sales (USDm)                 930        526         139        (388) 1,207
EBITDA (USDm)                 14          9          16          3    42
Depreciation &
Impairment (USDm)            57          7           1           6    71
Operating (loss) /
income (USDm)               (43)          2          15          (3)   (29)
Note 1: Stainless & Electrical Steel shipments of 370kt of which 151kt were
from South America and 219kt were from Europe
Note 2: Stainless & Electrical Steel EBITDA of USD 14m of which USD 26m were
from South America and USD (12)m were from Europe

[1]The financial information in  this press release and  Appendix 1 has  been 
prepared in  accordance  with  the measurement  and  recognition  criteria  of 
International  Financial  Reporting  Standards  ("IFRS")  as  adopted  in  the 
European Union.  While  the interim  financial  information included  in  this 
announcement has been prepared in  accordance with IFRS applicable to  interim 
periods,  this  announcement  does  not  contain  sufficient  information   to 
constitute an interim financial report as defined in International  Accounting 
Standard 34, "Interim Financial Reporting". Unless otherwise noted the numbers
and information in  the press  release have  not been  audited. The  financial 
information and certain other information presented  in a number of tables  in 
this press  release have  been rounded  to  the nearest  whole number  or  the 
nearest decimal. Therefore, the sum of the numbers in a column may not conform
exactly to  the total  figure  given for  that  column. In  addition,  certain 
percentages presented in the tables in this press release reflect calculations
based upon the underlying information prior to rounding and, accordingly,  may 
not conform exactly to the percentages  that would be derived if the  relevant 
calculations were based upon the rounded numbers.
[2]Lost time injury frequency  rate equals lost  time injuries per  1,000,000 
worked hours, based on own personnel and contractors.
[3]EBITDA is defined  as operating  income plus  depreciation and  impairment 
expenses. 
[4]The Leadership Journey^® is an  initiative launched on December 16,  2010, 
and subsequently accelerated  and increased,  to target  management gains  and 
profit enhancement of  USD 350 million  by 2013. On  February 4, 2013,  Aperam 
announced an expansion of the Leadership Journey® to 2014 with USD 150 million
targeted over the next 2 years.
[5]Subject to eligible collateral available

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