(Reuters) -Spanish steelmaker Acerinox reported slightly weaker than expected third-quarter earnings on Friday, citing low demand for stainless steel in the U.S. and Europe. Its adjusted earnings
Acerinox Reports Third-Quarter Profits Below Expectations Amid Low Demand
(Reuters) -Spanish steelmaker Acerinox reported slightly weaker than expected third-quarter earnings on Friday, citing low demand for stainless steel in the U.S. and Europe.
Its adjusted earnings before interest, taxes, depreciation and amortisation came in at 108 million euros ($125.95 million), missing analysts' average estimate of 112 million euros, according to data compiled by LSEG.
According to the steelmaker, sales in the U.S. will "undoubtedly" fall in the fourth quarter due to year-end seasonality, and core-profits will therefore be lower than in the third quarter.
Though the company said the U.S. 50% tariffs on steel imports were helping its business there, it also pointed to negative aspects of the trade-related uncertainty.
"The prevailing mood of reserve and caution has continued, in which major distributors have only replenished what they have sold, awaiting greater clarity on the economic future," Acerinox said in a statement.
Even though Acerinox should benefit from a push towards protectionism in both of its main markets, a mix of increased uncertainty, supply-chain disruptions and companies deferring purchases and investments has hit the company's results.
The company is set to benefit from the European Commission's recently announced import quotas, as prices in Europe have slumped due to what European steelmakers denounce as global overcapacity and cheap imports from Asia.
($1 = 0.8575 euros)
(Reporting by Javi West Larrañaga; Editing by Anna Pruchnicka)
