The following is a summary of the Acerinox, S.A.(ANIOY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Acerinox reported a satisfactory Q1 EBITDA of €111 million despite challenging market conditions.

• The company generated €188 million in cash this quarter, largely due to inventory reduction of €89 million.

• A significant reduction in net debt was seen, with a net financial debt of €234 million, the lowest in approximately 24-25 years.

• Acerinox's High-Performance Alloys division performed strongly, with an EBITDA of €31 million.

• An operating cash flow of €76 million was achieved in the High-Performance Alloys division through an operating working capital reduction of €52 million.

• The company holds a cash reserve of €1.9 billion and has additional €700 million facilities, providing robust liquidity.

Business Progress:

• Acerinox reports ongoing challenges with a strike at its Spanish plant, slightly impacting the company's performance.

• The company plans to temporarily cease production in their Bahru plant in Malaysia due to current Asian market prices.

• Progress is being made in the acquisition of Haynes, with closure expected early in Q3.

• Acerinox expects Q2 results to improve, despite ongoing strike issues at their Spanish plant.

• Acerinox's working capital reduction demonstrated strong financial leverage this quarter, which is expected to last throughout the year.

• The final regulatory approval for the Haynes acquisition is underway, with an expectation of a third-quarter completion.

• The company predicts achieving €71 million in synergies from the Haynes acquisition.

• Capital expenditures are expected to rise in subsequent quarters due to projects in North America and others related to high-performance alloys.

• Acerinox projects continued demand for its VDM high-performance alloys without expecting significant metal effects, with an annual budget of around €125 million.

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