By Maitane Sardon
Aperam shares rose after the company posted better-than-expected adjusted earnings for the third quarter.
Shares traded 6.4% higher in late morning trading on Friday at 27.60 euros, but they are down 16% year to date.
Luxembourg-based steelmaker Aperam said adjusted earnings before interest, taxes, depreciation and amortization were 99 million euros ($107 million), up from 19 million euros in the same quarter a year earlier and ahead of the 94 million euros Visible Alpha analysts were expecting.
The beat was driven by the Stainless and Electrical steel division, where seasonally lower volumes in Europe were more than compensated by higher prices, cost improvements and a positive development in Brazil, Jefferies analysts said in a note.
For the fourth quarter of 2024, the company said it expects higher adjusted Ebitda than the same quarter the previous year, with an improvement in its cash flow position.
The company expects to close the acquisition of Universal Stainless & Alloy Products in 2025's first half, which is a key catalyst for the stock, Citi analysts said in a note, adding that the transaction will increase Aperam's exposure to alloys and expand its footprint in the U.S. for the first time.
"Aperam is a better exposure on stainless earnings recovery in our coverage," Citi said.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
November 08, 2024 07:07 ET (12:07 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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