Latest news with #Aperam
Business Recorder
a day ago
- Business
- Business Recorder
European shares pressured by Trump's new tariff threats
FRANKFURT: European shares retreated on Monday after rounding off monthly gains in May, as US President Donald Trump's new tariff plans threatened to rekindle global trade tensions. The continent-wide STOXX 600 was down 0.5% as of 0759 GMT, after recording about a 4% gain in May. Late on Friday, Trump said he planned to increase tariffs on imported steel and aluminum to 50% from 25%, to which the European Union said it was prepared to retaliate. Steel companies such as ArcelorMittal and Aperam were down about 1% each. Automakers saw the biggest impact, with Milan-listed Stellantis down 3%. Mercedes-Benz, BMW and Volkswagen fell between 1.4% and 2%. The sector dipped 1.6%. Luxury stocks, among Europe's exports, also dipped with the broader gauge down 1.6%. An index measuring volatility in the market was up 1.7 points at 20.88, its highest in a week. 'The latest announcement renews tensions... it's also an indication that the trade negotiations may not be going toward the right direction,' said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. 'The trade tensions have a very direct impact on the luxury sales, because for the biggest exports of the major European companies, America is one of the biggest markets.' Most regional bourses were trading lower, with Germany's DAX down 0.6%. However, oil stocks tracked prices of the commodity sharply higher, after producer group OPEC+ decided to increase output in July by an amount which is less than feared by many. An index tracking defence companies also ticked higher as tensions between Russia and Ukraine flared again over the weekend, but representatives were due to meet on Monday. Among other stocks, Sanofi agreed to buy US-based Blueprint Medicines Corporation, paying $129 per share, representing an equity value of approximately $9.1 billion. Shares in the French pharma group fell 1.2%. Elsewhere, stocks in Poland fell 1.4%, after nationalist opposition candidate Karol Nawrocki won the second round of the country's presidential election.
Yahoo
03-05-2025
- Business
- Yahoo
Aperam S.A. Beat Revenue Forecasts By 17%: Here's What Analysts Are Forecasting Next
Aperam S.A. (AMS:APAM) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to €26.10 in the week after its latest first-quarter results. Aperam beat revenue forecasts by a solid 17% to hit €1.7b. Statutory earnings per share came in at €3.17, in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. We've discovered 1 warning sign about Aperam. View them for free. Taking into account the latest results, the most recent consensus for Aperam from nine analysts is for revenues of €6.62b in 2025. If met, it would imply a satisfactory 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plunge 37% to €2.01 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.60b and earnings per share (EPS) of €2.28 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts. View our latest analysis for Aperam It might be a surprise to learn that the consensus price target was broadly unchanged at €31.19, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aperam, with the most bullish analyst valuing it at €37.00 and the most bearish at €25.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Aperam's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.1% annually. So it's pretty clear that, while Aperam's revenue growth is expected to slow, it's still expected to grow faster than the industry itself. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €31.19, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on Aperam. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aperam analysts - going out to 2027, and you can see them free on our platform here. You still need to take note of risks, for example - Aperam has 1 warning sign we think you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
European steelmakers flag trade and price risks despite quarterly earnings beats
By Anna Peverieri and Alban Kacher (Reuters) -Europe's top steelmakers showed more resilience than expected in their first-quarter earnings, but warned that global trade tensions, weak European prices and market volatility are clouding the outlook for the rest of the year. ArcelorMittal, which reported on Wednesday a smaller-than-expected drop in its quarterly core profit, flagged trade disruptions as a risk to its 2025 steel demand forecasts, particularly in the U.S. and China, sending its shares down more than 5%. "Heightened uncertainty around the terms of global trade is hurting business confidence and risks causing further economic disruption if not quickly resolved," the CEO of the world's number two steelmaker Aditya Mittal said, echoing concerns raised by Swedish rival SSAB. SSAB, which also reported a smaller-than-expected drop in earnings on Tuesday, said the proximity of its facilities to customers, and specialised products helped cushion the immediate impact of new U.S. tariffs, but warned of a "more uncertain than usual" second-quarter outlook in its steel division. The results of Luxembourg-based steel group Aperam also came slightly above expectations on Wednesday, which it credited to higher volumes in Europe and the contribution from the consolidation of its U.S.-based business. Aperam, which makes stainless and speciality steels and alloys, operates mainly in the EU and Brazil, and has limited exposure to the U.S. market. The group warned that pricing pressure would weigh further on its earnings in the second quarter, though it should improve compared to the previous three months' performance. However, its admission that it was difficult to provide an outlook for the quarters further ahead sent its shares down in early trading. "Reliable projections for the remainder of the year are challenging in the current volatile environment," group CEO Timoteo Di Maulo said. According to Oddo-BHF analyst Maxime Kogge, second quarter could bring some relief with trade restrictions expected to lift prices, European players further reducing their exposure to China, and restructuring efforts paying off. However, a mix of high energy costs, competition from cheap Chinese producers and higher tariffs on exports to the United States loom large over the European steel industry at a time when the global market already grapples with excess capacity. "Global steel excess capacity is expected to continue rising, (...) fuelled by cross-border investments by Chinese steel companies," the Organisation for Economic Co-operation and Development said in a report earlier this month. ArcelorMittal offered a mixed assessment of its Asian markets. It expects the strong demand trends in India to continue to play out supported by the new 12% safeguard Indian duty on steel imports, notably from China. In China, however, the group expects low steel spreads - the margin between steel prices and production costs - to persist due to overcapacity. Despite its cautious tone, ArcelorMittal reaffirmed its 2025 investment plans and noted a rebound in European steel spreads, supported by the European Commission's Steel and Metals Action Plan, trade barriers against imports and an expected rise in Germany's spending on infrastructure. Other European steel companies, Finland-based Outokumpu Oyj and Spain's Acerinox are due to report their first-quarter results on May 8.
Reuters
30-04-2025
- Business
- Reuters
European steelmakers flag trade and price risks despite quarterly earnings beats
April 30 (Reuters) - Europe's top steelmakers showed more resilience than expected in their first-quarter earnings, but warned that global trade tensions, weak European prices and market volatility are clouding the outlook for the rest of the year. ArcelorMittal , which reported on Wednesday a smaller-than-expected drop in its quarterly core profit, flagged trade disruptions as a risk to its 2025 steel demand forecasts, particularly in the U.S. and China, sending its shares down more than 5%. "Heightened uncertainty around the terms of global trade is hurting business confidence and risks causing further economic disruption if not quickly resolved," the CEO of the world's number two steelmaker Aditya Mittal said, echoing concerns raised by Swedish rival SSAB ( opens new tab. SSAB, which also reported a smaller-than-expected drop in earnings on Tuesday, said the proximity of its facilities to customers, and specialised products helped cushion the immediate impact of new U.S. tariffs, but warned of a "more uncertain than usual" second-quarter outlook in its steel division. The results of Luxembourg-based steel group Aperam ( opens new tab also came slightly above expectations on Wednesday, which it credited to higher volumes in Europe and the contribution from the consolidation of its U.S.-based business. Aperam, which makes stainless and speciality steels and alloys, operates mainly in the EU and Brazil, and has limited exposure to the U.S. market. The group warned that pricing pressure would weigh further on its earnings in the second quarter, though it should improve compared to the previous three months' performance. However, its admission that it was difficult to provide an outlook for the quarters further ahead sent its shares down in early trading. "Reliable projections for the remainder of the year are challenging in the current volatile environment," group CEO Timoteo Di Maulo said. According to Oddo-BHF analyst Maxime Kogge, second quarter could bring some relief with trade restrictions expected to lift prices, European players further reducing their exposure to China, and restructuring efforts paying off. However, a mix of high energy costs, competition from cheap Chinese producers and higher tariffs on exports to the United States loom large over the European steel industry at a time when the global market already grapples with excess capacity. "Global steel excess capacity is expected to continue rising, (...) fuelled by cross-border investments by Chinese steel companies," the Organisation for Economic Co-operation and Development said in a report earlier this month. ArcelorMittal offered a mixed assessment of its Asian markets. It expects the strong demand trends in India to continue to play out supported by the new 12% safeguard Indian duty on steel imports, notably from China. In China, however, the group expects low steel spreads - the margin between steel prices and production costs - to persist due to overcapacity. Despite its cautious tone, ArcelorMittal reaffirmed its 2025 investment plans and noted a rebound in European steel spreads, supported by the European Commission's Steel and Metals Action Plan, trade barriers against imports and an expected rise in Germany's spending on infrastructure. Other European steel companies, Finland-based Outokumpu Oyj ( opens new tab and Spain's Acerinox ( opens new tab are due to report their first-quarter results on May 8.
Reuters
07-04-2025
- Business
- Reuters
Aperam urges EU Commission to implement Steel Action Plan without delay
April 7 (Reuters) - Luxembourg-based steel group Aperam ( opens new tab has urged the European Commission to implement the recommendations of its Steel Action Plan without delay, the group's CEO said on Monday. Aperam, which makes stainless and speciality steels and alloys, told the Commission that it needed to "apply existing trade defense instruments assertively", CEO Timoteo Di Maulo said in an emailed statement to Reuters. "We called for swift and decisive action to prevent and address any circumvention of these measures," he added. Aperam asked for the introduction of a long-term measure that offers robust and effective protection for the EU steel industry, to replace the current safeguard mechanism that Di Maulo said was no longer adequate. European Commission President Ursula von der Leyen held a call with metals industry representatives on Monday and was speaking to the automobile sector later to discuss how to respond to U.S. tariffs. The calls aimed to collect data for further counter-measures beyond Brussels' upcoming response to Washington's steel duties, which will be voted on later this week.
