Ferroglobe Reports Results For Third Quarter 2016

  • Q3 2016 revenue of $365.0 million, down from $398.0 million in Q2 2016
  • Net loss of $(28.5) million, or $(0.17) on a fully diluted per share basis; Adjusted net loss of $(14.6) million, or $(0.09) on a fully diluted per share basis for the quarter
  • Reported EBITDA loss of $(3.2) million, which includes an impairment charge of $9.0 million for the company's mining operations in South Africa as well as an inventory impairment charge of $4.3 million; Adjusted EBITDA of $12.8 million for the quarter
  • Operating cash flow generation of $22.5 million and free cash flow generation of $11.7 million for Q3
  • Exceeded working capital synergies target of $100 million by reducing working capital by $136.5 million year-to-date
  • Increased synergies target to $85 million annualized, up from $65 million previously
  • Maintained dividend, reflecting confidence in underlying strength of the business

LONDON, Nov. 13, 2016 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ:GSM), the world's leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, announced today results for the third quarter of 2016. 

In the third quarter of 2016, Ferroglobe posted a net loss of $(28.5) million, or $(0.17) per share on a fully diluted basis. Excluding an inventory impairment charge and an additional impairment charge for South Africa, the company posted an adjusted net loss of $(14.6) million, or $(0.09) per share on a fully diluted basis.     

Ferroglobe reported an EBITDA loss of $(3.2) million for the third quarter due to an inventory impairment charge of $4.3 million in Venezuela and China, and a further $9.0 million impairment charge of the company's mining assets in South Africa. Excluding these charges Q3 2016 adjusted EBITDA was $12.8 million.

Net sales in the third quarter totalled $365.0 million, down from $398.0 million sequentially. In the third quarter, Ferroglobe's average selling price for silicon metal declined by 6% from the previous quarter's average selling price, primarily due to pressure from low-priced imports. During this period, the average selling price for silicon-based alloys decreased 3% from the second quarter of 2016 and the average selling price for manganese alloys increased 11% from the second quarter of 2016.

If you liked this article you might like

Ferroglobe (GSM) Slips After J.P. Morgan Downgrade

Ferroglobe (GSM) Stock Tumbles as Q2 Results Miss Estimates

Globe Specialty Metals (GSM): Today's Weak On High Volume Stock

Globe Specialty Metals (GSM) Is Strong On High Volume Today

Globe Specialty Metals (GSM) Weak On High Volume