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22 OCTOBER 2020 AL CIRCLE

Gränges sales volume increases 1% to 86.7 Ktonnes in Q3 2020, but total sales during Jan-Sept decline 8.2%

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Gränges, a global leader in aluminium engineering, manufacturing and innovation, has announced the financial report of Q3 2020 declaring that its sales volume increased by 1.1 per cent to 86.7 Ktonnes (85.8). However, net sales decreased to SEK 2,575 million (2,998).

Gränges sales volume increases 1% to 86.7 Ktonnes in Q3 2020, but total sales during Jan-Sept decline 8.2%

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Adjusted operating profit in the September quarter stood at SEK 203 million (190), while adjusted operating profit per tonne amounted to 2.3 kSEK (2.2). Profit for the period came in at SEK 124 million (198).

Cash flow before financing activities increased to SEK 348 million (155), including capital expenditure of SEK 61 million (409). Adjusted cash flow before financing activities was SEK 380 million (442).

Gränges’ total sales volume during January-September 2020 stood down by 8.2 per cent year-on-year to 247.4 Ktonnes. Net sales also decreased to SEK 7,858 million (9,295).

Adjusted operating profit during the first nine months of the year was SEK 455 million (721) and adjusted operating profit per tonne was 1.8 kSEK (2.7)

Profit for the period amounted to SEK 257 million (553), including items affecting comparability of SEK –37 million (–).

Net debt decreased to SEK 2,812 million at September 30, 2020, corresponding to 2.5 times adjusted EBITDA.

Global Bauxite Industry Insights

CEO Johan Menckel said, “We experienced clear signs of market recovery in the third quarter of 2020 although the COVID-19 pandemic continued to impact the markets in which Gränges operates.”

He also said, “Market conditions in the third quarter were particularly strong for the HVAC & Other business, where a generally high market activity was further amplified by the long and warm summer season. The strong demand together with gains in market share contributed to a 15 per cent increase in sales volume compared with last year. For the automotive business we experienced a sequential recovery in the third quarter with a lower year over year decline than in the second quarter. The signs of recovery were strongest in Asia, with China as the main driver, and Americas, where sales to Automotive customers declined by only 5 per cent and 12 per cent respectively year over year despite reductions of inventory at customer level. The European automotive market remained challenging also in the third quarter with a sales volume decline of 27 per cent, although there was increased market activity in the end of the quarter.”


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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