MADRID, July 27 (Reuters) - Acerinox, the world's largest stainless steel maker, swung to a first-half net profit thanks to a recovery in demand, though a provision to mark stock down to volatile nickel prices pulled it below forecasts.
Net profit for Acerinox reached 81 million euros ($104.6 million) after a 254 million euro loss a year ago, driven by increased output as steel demand maintained the recovery seen in the first quarter.
'Results are very good, particularly at EBITDA, once we exclude the nickel provision,' said Cesar Sanchez-Grande, analyst for Ahorro Corporacion.
Earnings before interest, tax, depreciation and amortisation (EBITDA) reached 233 million euros, compared with a 282 million euro loss a year earlier and beating a Reuters forecast for 221 million.
Acerinox, which makes nearly 10 percent of the world's stainless steel, said it would forge ahead with plans to add more capacity at its Bahru plant in Malaysia, and had named Bernardo Velazquez as new chief executive officer.
Velazquez, former managing director of Acerinox, will replace veteran Rafael Naranjo, who remains company chairman.
'With Naranjo staying on as executive chairman, we don't see a big variation in the company's strategy,' Sanchez-Grande said.
Shares in Acerinox, which competes with Finland's Outokumpu , closed up 0.98 percent at 13.3 euros before the results were released, underperforming a 1.3 percent gain on Spain's blue-chip index.
(Reporting by Tracy Rucinski, editing by Will Waterman)
($1=.7746 Euro) Keywords: ACERINOX EARNINGS/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Net profit for Acerinox reached 81 million euros ($104.6 million) after a 254 million euro loss a year ago, driven by increased output as steel demand maintained the recovery seen in the first quarter.
'Results are very good, particularly at EBITDA, once we exclude the nickel provision,' said Cesar Sanchez-Grande, analyst for Ahorro Corporacion.
Earnings before interest, tax, depreciation and amortisation (EBITDA) reached 233 million euros, compared with a 282 million euro loss a year earlier and beating a Reuters forecast for 221 million.
Acerinox, which makes nearly 10 percent of the world's stainless steel, said it would forge ahead with plans to add more capacity at its Bahru plant in Malaysia, and had named Bernardo Velazquez as new chief executive officer.
Velazquez, former managing director of Acerinox, will replace veteran Rafael Naranjo, who remains company chairman.
'With Naranjo staying on as executive chairman, we don't see a big variation in the company's strategy,' Sanchez-Grande said.
Shares in Acerinox, which competes with Finland's Outokumpu , closed up 0.98 percent at 13.3 euros before the results were released, underperforming a 1.3 percent gain on Spain's blue-chip index.
(Reporting by Tracy Rucinski, editing by Will Waterman)
($1=.7746 Euro) Keywords: ACERINOX EARNINGS/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
