Deutsche Bank | Acerinox published its fourth quarter results and adjusted EBITDA of €101 million was broadly in line with underlying expectations, while the significant level of inventory impairment (around €60 million, despite the increase in nickel prices) brought reported EBITDA to €32 million (consensus €77 million versus €73 million expected).
Importantly, cash flow was again very strong, driven mainly by a significant release of working capital, resulting in net debt being reduced by €54 million to €1.2 billion, despite the high tax and investment burden during the quarter.
Management expects slightly better EBITDA in the first quarter, and although this is a step in the right direction, it is still below the execution rates needed to achieve the EBITDA target of €600-800 million.
