Acerinox, S.A. (ANIOY) Q1 2025 Earnings Call Transcript

2025-05-11 04:06:10 ET

Acerinox, S.A. (ANIOY)

Q1 2025 Results Conference Call

May 8, 2025 05:00 AM ET

Company Participants

Carlos Lora-Tamayo - Head, Investor and Media Relations

Miguel Ferrandis - CCO

Bernardo Velazquez - CEO

Esther Camos - CFO

Conference Call Participants

Adahna Ekoku - Morgan Stanley

Tristan Gresser - BNP Paribas

Tom Zhang - Barclays

Dominic O'Kane - JPMorgan

Bastian Synagowitz - Deutsche Bank

Tommaso Castello - Jefferies

Robert Jackson - Santander

Maxime Kogge - ODDO BHF

Presentation

Carlos Lora-Tamayo

Good morning, everyone, and welcome to the Acerinox First Quarter '25 Conference Call. Today, the presentation will be hosted by our CEO, Bernardo Velazquez; our Chief Corporate Officer, Miguel Ferrandis; and our CFO, Esther Camos. After our prepared remarks, we will open the line for questions.

Before getting started, let me remind you that this conference call is being broadcast on our website at acerinox.com.

Now I would like to give the floor to our CEO, Bernardo. Please go ahead.

Bernardo Velazquez Herreros

Good morning, everyone, and thank you for attending this presentation. Before I came here, I was reading the reactions in the newspapers saying something like the Acerinox results are shrinking because of tariffs. This is not reflecting the reality. Esther and Miguel will explain later our financial data and why the profits are below Q1 '24, but this is not the situation. Remember, there was a correction in the market in Q4. And as expected, we started this quarter recovering gradually, recovering step by step.

March was a good month in order book. Our order book is in a healthy situation. And in the 2nd of April with the announcement of the Liberation Day with the tariffs that created a lot of confusion, it doesn't mean that the market shrunk again or that the market went down again. The market remained stable at the level of March, waiting for the negotiation. I think what's going to be -- what can happen with the situation, supply chains and how the tariffs will affect the different markets.

What can we do in this situation, in this scenario? Well, first of all, as we present in this slide is control the controllable. So we have to serve these big waves and the best way to do it is monitoring our supply chains, keeping control of our business and keeping control of our working capital. I think this is something that we always try to show that we have experience in managing the volatility and the working capital is a very tight control. This is important. And once we have this, so we are always in a cyclical business, long-term oriented with a huge experience in this industry.

We're focusing on our long-term strategy as you can see here. So we have released a plan to control our working capital that is working well. We will focus on this to reduce our debt. We are very happy and very busy integrating things in the organization until now is a real success. We are focusing in the strategic plan of Acerinox Europe, trying to move to added value materials the same that we are working and diversifying the production of Columbus to reduce the dependency of -- in our exports....

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