Ferroglobe posted a net loss of $5-million in the third quarter of 2017, or $(0.02) per share on a fully diluted basis. On an adjusted basis, third quarter 2017 net profit was $9.2-million, or $0.05 per share on a fully diluted basis.
The company’s EBITDA was $54.3-million in the third quarter of 2017, up from $36.8-million in the prior quarter. On an adjusted basis, EBITDA was $56.1-million, up 27.9% from te adjusted EBITDA of $43.9-million. The company reported adjusted EBITDA margins of 12.4% for third quarter of 2017 compared to adjusted EBITDA margins of 10.3% for the second quarter 2017.
Net sales in third quarter of 2017 totaled $451.6-million, up 6.1% from $425.8-million in the second quarter of 2017. Selling prices for Ferroglobe’s key products continued to improve over the course of the quarter across both the US and Europe.
The trade cases in the US and the favorable demand environment have allowed Ferroglobe to return to close to full capacity utilization. The Selma, AL facility has restarted operations, and the remainder of Ferroglobe’s European and North American plants are running at full capacity.
Facilities in Argentina and South Africa are at 50% and 65% utilization, respectively, as a result of unfavorable local conditions, but are planning to restart full operations in the near future. Ferroglobe’s plant in Venezuela has halted operations since May, as the company awaits further developments in the country.
Ferroglobe now says it plans to appeal the Canadian International Trade Tribunal ruling that dumped silicon metal imports from Laos and Thailand, subsidized imports from Norway, and dumped and subsidized imports from Brazil, Kazakhstan and Malaysia had not caused injury and were not threatening to cause injury to the sole Canadian producer, Quebec Silicon Limited and QSIP Canada ULC.
Ferroglobe believes the CITT made several critical errors regarding, among others, the impact and relevance of global price declines on Canadian market pricing and the basis on which silicon metal is negotiated and sold to customers in Canada.