Ferroglobe PLC(NASDAQ: GSM) delivered a net loss of $(5.0) million in the third quarter of 2017 and a diluted loss per share of $(0.02), which fell from a net profit of $1.0 million and diluted earnings per share of $0.02 in the prior corresponding period hurt by tax adjustments/valuation allowances. As a result, the stock lost over 0.04% in the after-hours session on November 27th, 2017.
They delivered an adjusted net profit of $9.2 million, or $0.05 on a fully diluted per share basis during the quarter from a net profit of $6.0 million, or $0.05 on a fully diluted per share basis in the prior quarter. EBITDA enhanced 48% yoy to $54.3 million during the quarter from EBITDA of $36.8 million in the earlier quarter. Price recovery and volume improvements in both silicon metal and manganese-based alloys drove the performance.
The group maintained a solid balance sheet position during the third quarter with net debt falling to $394.3 million from $434.6 million in the second quarter of 2017
The average selling price for silicon metal enhanced 5.4% from $2,210/MT in the second quarter of 2017 to $2,330/MT in the third quarter of 2017, boosted by the market impact of the ongoing trade cases in the United States. The average selling price for silicon-based alloys enhanced 3.7% to $1,645/MT in the quarter from $1,586/MT in the prior quarter while average selling price for manganese alloys rose 3.1% to $1,349/MT in the third quarter from $1,308/MT in the prior quarter.
The group enhanced pricing, while the demand and volumes across its key products were stable. Silicon metal experienced a 0.7% rise on quarter-over-quarter, while manganese alloys experienced a 14.3% increase quarter-over-quarter and silicon alloys witnessed a 5.7% fall on a quarter-over-quarter basis.
The group also made an agreement with Glencore International for acquiring Grupo FerroAtlántica, S.A. in Dunkirk (France) and Mo I Rana (Norway). With this move, the group intends to leverage the plants in France and Norway which would enhance the group’s size in the manganese alloys industry. The combined sales of these plants were over 160,000 tons of ferromanganese and 110,000 of silicomanganese in 2016. This deal would consolidate the network of manganese alloy plants in Europe, while offer major advantages to their customers