Stainless Steel Me

Spanish stainless steel maker Acerinox missed forecasts with a 255 million euro loss in the first half but said it expected positive results in the third quarter and a pickup in demand in the fourth.

“We consider that the worst has passed,” the company said in a statement.

Acerinox shares fell on the results and were trading 2.2 percent lower at 13.7 euros by 1257 GMT.

Revenues slumped to 1.29 billion euros — in line with forecasts — from 3.2 billion in the first half of 2008.

A Reuters survey of nine analysts forecast losses at 203 million euros versus a profit of 154 million euros a year ago. Forecast losses ranged from 140 and 241 million euros.

“The recovery in demand that we have seen in recent months, the consolidation of price rises in all markets, recent levels reached in the order book, the increases in production expected in all plants and the low level of stocks … leads us to be optimistic about the third quarter,” the company said.

“We expect that final demand will return from the fourth quarter.”

Acerinox added that despite its expectation of positive results in the third quarter, it was being prudent and would make a 25.7 million euro provision for the falling value of its stocks.

To cope with the global economic crisis Acerinox had cut 50 percent of its production in its Spanish, U.S., and South African plants and temorarily laid off 1,800 people in Spain to save 133 million euros a year.

Reuters