Acerinox : obtains profits totalling 98 million Euros in the first quarter, exceeded those generated during the whole of the previous year

After tax and minority interests, Acerinox ended the first quarter of 2017 with a net profit totalling 98 million Euros. The quarter stands out as the best in the last ten years.

The net profit for the first three months of the year was 18 million Euros higher than that obtained in the whole of the previous year, when the company obtained 80 million Euros, and stood 106 million Euros higher than in the first quarter of 2016, when losses totalling eight million Euros were recorded.

Between January and March this year, the EBITDA reached 191 million Euros, a figure 366% higher than in the first quarter of the previous year (41 million Euros), while the Group's turnover totalled 1,252 million Euros, with a rise of 31.4% as a result of the increases in activity in all the markets and the prices improvement.

Steel mill production underwent an increase of 16.1%, registering a total of 667,523 tonnes. Hot rolling and cold rolling production also increased, with respective rises of 12.6% and 4.8%.

Once again, the Group demonstrated its dynamism and flexibility by capitalizing on the improvement in the market conditions and the increase resulting from the rises in raw material prices, thereby increasing production and improving margins and volumes.

Dividends

The Board of Directors, in keeping with the company's shareholder remuneration policy, approved the distribution of a dividend with a charge to unrestricted reserves totalling 0.45 Euros per share, to be paid in cash on 5 July 2017.

Prospects

The market continues to perform well. The Group's order books are sufficient and will enable it to increase production, making us optimistic about the second quarter, although we will not enjoy the contribution to the margin resulting from the revaluation of stocks and raw materials.

As we mentioned in the previous publication of results, inventories remain high in China, and it will therefore be advisable to monitor their evolution

The Board of Directors approves the appointments of Rosa García Piñeiro and Laura González Molero as Directors

The Board of Directors, at its meeting held yesterday, approved the appointments by co-optation of two new Independent Directors.

• Rosa García Piñeiro is an Industrial Engineer and has a master's degree in Industrial Organization and Management from the Universities of Vigo and the National University of Ireland. She has conducted her professional career in Alcoa, occupying the position of President of Alcoa Spain. She is currently Global Sustainability Vice-President and President of the Alcoa Foundation.

• Laura González Molero is a graduate in Pharmacy from the Complutense University of Madrid and has an Executive MBA from the IE Business School. She has conducted her professional career at international chemical-pharmaceutical companies, occupying the position of CEO of Merck in Spain, President of Merck in Latin America and President of Bayer in Latin America. She has been an Independent Director of Viscofan S.A. and is currently an Independent Director of Grupo Ezentis, S.A. and the Adecco Foundation

• Laura González Molero was also appointed as a member of the Audit Committee in the Board of Directors meeting held yesterday

The newly appointed Directors replace the Proprietary Directors Óscar Fanjul Martín and Diego Prado Pérez Seoane

Investments

The new North American Stainless bright annealing line and cold rolling mill have been installed and are undergoing tests, following an investment totalling 120 million dollars. The first results have been satisfactory.

The Group's installation of the annealing and pickling line and the cold rolling mill at the Campo de Gibraltar factory, with an investment totalling 140 million Euros, is going according to plan and their start-up is envisaged at the end of the year.