Aperam : First quarter 2013 results[1]

                    Aperam : First quarter 2013 results[1]

Luxembourg, May 7, 2013

Aperam (referred  to as  "Aperam" or  the "Company")  (Amsterdam,  Luxembourg, 
Paris: APAM and  NYRS: APEMY),  today announced  results for  the three  month 
period ending March 31, 2013

Highlights




  *Health and Safety frequency rate^[2] of 1.1x in Q1 2013 compared to 1.9 x
    in Q4 2012

  *Shipments of 401 thousand tonnes in Q1 2013, a 1% decrease compared to
    shipments of 407 thousand tonnes in Q4 2012

  *EBITDA^[3] of USD 65 million in Q1 2013, compared to EBITDA of USD 43
    million in Q4 2012

  *Basic loss per share of USD 0.36 in Q1 2013.

  *Cash flow from operations amounted to USD 10 million in Q1 2013

  *Net debt of USD 842 million on March 31, 2013, representing a gearing of
    27%

Prospects



  *EBITDA in Q2 2013 is expected to slightly improve compared to Q1 2013 and
    net debt to remain under control

ipmayan, CEO ofAperam, commented:

"The first quarter has been marked by important industrial and commercial
challenges but Aperam has succeeded to improve its EBITDA and to keep its net
debt under control.
Looking forward, the environment is expected to be more challenging, mainly
because of the significant deterioration of the nickel price. However we are
confident we will be able to improve our performance again due in particular
to the successful progress of our Leadership Journey®[4]."


Financial Highlights (on the basis of IFRS)



(USDm) unless otherwise stated Q1 '13 Q4'12[5] Q1 '12[5]
Sales                          1,269   1,294     1,409
EBITDA                           65      43       65
Operating loss                  (11)    (45)     (12)
Net loss                        (28)    (53)     (12)
Steel shipments (000t)          401     407       433
EBITDA/tonne (USD)              162     106       150
Basic loss per share (USD)      0.36    0.69     0.15





Health & Safety results analysis

Health  and  Safety  performance  based   on  Aperam  personnel  figures   and 
contractors lost time injury frequency rate2, was 1.1x in the first quarter of
2013 compared to 1.9x in the fourth quarter of 2012.

Financial results analysis

Sales in  the first  quarter of  2013 decreased  by 2%  to USD  1,269  million 
compared to USD 1,294 million in the fourth quarter of 2012. Shipments in  the 
first quarter of 2013 decreased by 1%  at 401 thousand tonnes compared to  407 
thousand tonnes in the fourth quarter of 2012.

EBITDA was USD 65 million in the  first quarter of 2013 compared to EBITDA  of 
USD 43  million  in  the  fourth quarter  of  2012.  Despite  industrial  and 
commercial challenges,  EBITDA  increased  quarter on  quarter  driven  by  an 
improvement in prices and  a positive costs  squeeze. The Leadership  Journey® 
has continued to progress over the quarter and has contributed a total  amount 
of USD 299 million to EBITDA since the beginning of 2011.

Depreciation and impairment expense  in the first quarter  of 2013 was USD  76 
million.

Aperam had an operating loss in the  first quarter of USD 11 million  compared 
to an operating loss of USD 45 million in the previous quarter.

Net interest expense and  other financing costs in  the first quarter of  2013 
were USD 27 million, primarily related  to financing costs of USD 20  million. 
Realized and  unrealized foreign  exchange and  derivative losses  were USD  9 
million in Q1 2013.

The Company recorded a net loss of USD 28 million, inclusive of an income  tax 
benefit of USD 19 million, in the first quarter of 2013.

Cash flows from operations in the first quarter was negatively impacted by the
reduction of the utilisation of  the TSR program of  USD 75 million but  still 
remained positive at USD 10 million, with a working capital decrease of USD 19
million. CAPEX in the first quarter was USD 34 million.

As of  March 31,  2013, shareholders'  equity was  USD 3,078  million and  net 
financial debt was USD 842 million (gross financial debt as of March 31,  2013 
was USD 1,113 million and cash & cash equivalents were USD 271 million).

The Company had liquidity of USD 646 million as of March 31, 2013,  consisting 
of cash and  cash equivalents  (including short-term investments)  of USD  271 
million and undrawn credit lines^[6] of USD 375 million.

Operating segment results analysis

Stainless & Electrical Steel

The Stainless & Electrical Steel segment had sales of USD 1,007 million in the
first quarter of 2013. This represents a  decrease of 1% compared to sales  of 
USD 1,020 million in  the fourth quarter of  2012. Shipments during the  first 
quarter were 388 thousand tonnes, including 250 thousand tonnes in Europe  and 
138 thousand tonnes in  South America. This  is a decrease  of 3% compared  to 
shipments of 400 thousand tonnes in the previous quarter (249 thousand  tonnes 
in Europe and 151 thousand tonnes in South America). Despite reconstruction of
the new hot annealing and pickling  line in Gueugnon plant in France,  volumes 
have been flat  in Europe in  Q1 2013 compared  to Q4 2012.  Volumes in  South 
America were  reduced  due  to production  problems.  Overall,  average  steel 
selling prices  for the  Stainless &  Electrical Steel  segment were  slightly 
higher for the quarter.

The segment had EBITDA of USD 47 million in the first quarter of 2013 compared
to USD 35 million  in the fourth  quarter of 2012.  EBITDA from South  America 
remained flat  in the  first quarter  of 2013  at USD  24 million.  The  lower 
volumes were compensated by improved margins through product mix optimization.
EBITDA from Europe increased from USD 11 million in the fourth quarter of 2012
to USD 23 million in the first  quarter of 2013. The improvement in EBITDA  in 
Europe was  primarily driven  by Aperam's  value strategy  and the  continuing 
progress of the Leadership Journey®. 

The Stainless & Electrical Steel segment  had an operating loss of 13  million 
during the first  quarter of  2013 compared  to an  operating loss  of USD  42 
million in the fourth quarter  of 2012. Depreciation and amortization  expense 
was USD 60 million in the first quarter of 2013.  

Services & Solutions

The Services  & Solutions  segment had  a  13% increase  in sales  during  the 
quarter, from USD 504 million in the fourth quarter of 2012 to USD 572 million
in the first quarter of 2013. In the first quarter of 2013, shipments were 171
thousand tonnes compared to 158 thousand  tonnes in the previous quarter.  The 
Services & Solutions segment had higher average selling prices for the period.
  

The segment had positive EBITDA in the first quarter of 2013 of USD 8  million 
compared to negative EBITDA of  USD 4 million in  the fourth quarter of  2012. 
The improvement in  EBITDA was  driven by  increase in  volumes, more  limited 
negative stock  effects  related to  the  nickel price  and  some  operational 
improvements.

Depreciation and impairment  expense in the  first quarter of  2013 was USD  7 
million. 

The Services & Solutions segment had an  operating income of USD 1 million  in 
the first quarter of 2013 compared to  an operating loss of USD 11 million  in 
the fourth quarter of 2012.  

Alloys & Specialties

The Alloys & Specialties segment had sales in the first quarter of 2013 of USD
163 million, representing a decrease of 4% compared to USD 170 million in  the 
fourth quarter of 2012. Shipments were higher in the first quarter of 2013  at 
10 thousand tonnes  compared to  9 thousand tonnes  in the  fourth quarter  of 
2012, while average selling prices decreased quarter over quarter. 

The Alloys &  Specialties segment  achieved EBITDA of  USD 12  million in  the 
first quarter of  2013 compared to  USD 13  million in the  fourth quarter  of 
2012. Despite higher volumes, EBITDA was  stable in the first quarter of  2013 
compared to  the fourth  quarter of  2012 primarily  as a  result of  the  mix 
deterioration.

Depreciation and impairment  expense in the  first quarter of  2013 was USD  5 
million. 

The Alloys & Specialties segment had operating income of USD 7 million in  the 
first quarter of 2013 compared  to operating income of  USD 11 million in  the 
fourth quarter of 2012. 

Recent developments

  *On February 20, 2013, Aperam,  Arvedi and Marcegaglia announced that  they 
    have signed a  memorandum of  understanding ("MoU") to  create an  Italian 
    Joint Venture aimed at participating in the sale process of the  stainless 
    steel producer Acciai  Speciali Terni S.p.A,  currently being divested  by 
    Outokumpu Oyj. 

  *On March 7,  2013, Aperam  announced the  publication of  its 2012  Annual 
    Report.

  *On April 8, 2013, Aperam announced the publication of the convening notice
    for its Annual General Meeting of shareholders.

Investor conference call

Aperam management will host a conference call for members of the investment
community to discuss the first quarter 2013 financial performance at the
following time: 

        Date         New York London  Luxembourg
Tuesday, May 7, 2013 12:30 pm 5:30 pm  6:30 pm

The dial-in numbers for the call are: France (+33(0)1 70 99 42 70); USA (+1646
254 3361); and international +44(0)20 3478 5300). The participant access code
is: 1543674#.

A replay of the conference call will be available until May 14, 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 1543674#.

Contacts

Corporate Communications / Jean Lasar:+352 27 36 27 27
Investor Relations / Romain Grandsart: +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 35 and pages 142  to 
146 of Aperam's annual report  for the year ended  December 31, 2012 filed  on 
March 7,  2013.  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. dollars) March 31,    December 31,    March 31,   
                                  2013         2012[5]       2012 [5]
                                                     
Non current assets                3,916            4,006      4,271
                                                     
Intangible assets                  845            859       924
Property, plant and                                  
equipments                        2,539            2,609      2,873
                                                     
Investments & Other           532                 538       474
Current assets & working                             
capital                           1,006            967      1,108
Inventories, trade                                   
receivables & trade payables       566            607       801
                                                     
Other assets                       169            134       140
                                                     
Cash & cash equivalents            271            226       167
                                                     
Shareholders' equity              3,078            3,162      3,541
                                                     
Group share                       3,074            3,158      3,535
                                                       
Non-controlling interests                 4            4              6
                                                     
Non current liabilities           1,023            1,043      1,020
                                                     
Interest bearing liabilities       600            607       581
                                                     
Deferred employee benefits         204            211       183
                                                     
Provisions and other               219            225       256
Current liabilities                                  
(excluding trade payables)         821            768       818
                                                     
Interest bearing liabilities       513            435       443
                                                     
Other                              308            333       375

APERAM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

                                            Three Months Ended
(in million of U.S. dollars) March 31,    December 31, 2012 March 31,   
                                  2013              [5]           2012 [5]
                                                        
Sales                               1,269           1,294        1,409
                                                     
EBITDA                              65               43        65
                                                     
Depreciation & impairment           76               88        77
                                                      
Operating loss                      (11)             (45)        (12)
Income from other                                    
investments                         -               1        -
Net interest expense and                              
other net financing costs           (27)             (22)        (19)
Foreign exchange and                                 
derivative gains / (losses)         (9)              (3)        5
                                                      
Loss before taxes                   (47)             (69)        (26)
                                                     
Income tax benefit                   19               16         14
                                                      
Net loss                            (28)             (53)        (12)

APERAM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                             Three Months Ended
(in million of U.S. dollars)  March 31,    December 31, 2012 March 31,   
                                   2013            [5]           2012 [5]
                                                      
Net loss                            (28)             (53)        (12)
                                                     
Depreciation and impairment         76               88        77
                                                      
Change in working capital                19              213        27
                                                      
Other                               (57)             (27)        (13)
Net cash provided by                                  
operating activities                10              221        79
Purchase of property, plant                           
and equipment (CAPEX)               (34)             (37)        (40)
Other investing activities                           
(net)                               2              -        (3)
Net Cash used in investing                            
activities                          (32)             (37)        (43)
Proceeds (payments) from
payable to banks and long                              
term debt                           72            (176)        (105)
                                                      
Dividends paid                      -             (15)        (15)
Other financing activities                           
(net)                               (1)              -        (1)
Net cash provided by (used                             
in) financing activities            71            (191)        (121)
Net increase (decrease) in                           
cash and cash equivalents           49              (7)        (85)
Effect of exchange rate                              
changes on cash                     (4)               5        5
Change in cash and cash                              
equivalent                          45              (2)        (80)

Appendix 1a - Health & Safety statistics

     Health & Safety                       Three Months Ended
       Statistics          March 31,     December 31, 2012 March 31,   
                                2013                                2012
     Frequency Rate              1.1               1.9              1.0

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

   Quarter Ended      Stainless &  Services &   Alloys &     Others &
   March 31, 2013     Electrical    Solutions  Specialties Eliminations Total
                       Steel^1,2
Operational
information
Steel Shipment
(000t)                    388        171         10        (168)   401
Steel selling price
(USD/t)                   2,493      3,176     15,830              3,022
Financial
information
Sales (USDm)              1,007        572        163        (473) 1,269
EBITDA (USDm)                  47          8         12          (2)    65
Depreciation &
Impairment (USDm)             60          7          5           4    76
Operating (loss) /    (13)    
income (USDm)                              1          7          (6)   (11)
Note 1: Stainless & Electrical Steel shipments of 388kt of which 138kt were
from South America and 250kt were from Europe
Note 2: Stainless & Electrical Steel EBITDA of USD 47m of which USD 24m were
from South America and USD 23m were from Europe

   Quarter Ended     Stainless &
    December 31,      Electrical  Services &    Alloys &     Others &   Total
2012Error: Reference  Steel^1,2    Solutions  Specialties  Eliminations
  source not found
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

[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]Figures for 2012 have been restated due to change in accounting  principle 
of defined benefit plans and  other long-term employee benefits, and  adoption 
of revised IAS 19 standard.
[6] Subject to eligible collateral available.

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