Q2_19_Press_Release

 

 

 

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the Month of September, 2019

 

Commission File Number: 001-37668

 

FERROGLOBE PLC

(Name of Registrant)

 

2nd Floor West Wing, Lansdowne House

57 Berkeley Square

London, W1J 6ER

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F 

Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):     

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):     

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes 

No  

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  N/A

 


 

 

This Form 6-K consists of the following materials, which appear immediately following this page:

 

·

Press release dated September 3, 2019 announcing results for the quarter ended June 30, 2019

·

Second quarter earnings call presentation

 

Ferroglobe Reports Second Quarter Results of 2019

 

Sales of $409.5 million; Net Loss of $(43.7) million; Adjusted EBITDA of $5.0 million

 

·

Q2 sales of $409.5 million, compared to $447.4 million in Q1 2019 and $577.9 million in Q2 2018

·

Q2 net loss of $(43.7) million compared to a net loss of $(28.6) million in Q1 2019 and a net profit of $66.0 million in Q2 2018

·

Q2 adjusted net loss attributable to parent of $(22.2) million compared to a net loss of $(21.9) million in Q1 2019 and a net profit of $25.6 million in Q2 2018

·

Q2 adjusted EBITDA of $5.0 million compared to $3.3 million in Q1 2019 and $83.0 million in Q2 2018

·

Successful closing of the divestiture of FerroAtlántica, S.A.U. on August 30, 2019, resulting in gross proceeds of €156.4 million

·

Suspension of 39,000 tons of annual silicon metal production capacity

·

Progress ongoing in the refinancing of the existing Revolving Credit Facility, targeting closing around the end of Q3 2019

 

LONDON, September 03, 2019 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), the world’s leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, today announced results for the second quarter of 2019.

 

Earnings Highlights

 

In Q2 2019, Ferroglobe posted a net loss of $(43.7) million, or $(0.24) per share on a fully diluted basis. On an adjusted basis, Q2 2019 net loss was $(22.2) million, or $(0.13) per share on a fully diluted basis.

 

Q2 2019 reported EBITDA was $(7.1) million, down from $3.3 million in the prior quarter. On an adjusted basis, Q2 2019 EBITDA was $5.0 million, up from Q1 2019 adjusted EBITDA of $3.3 million. The Company reported an adjusted EBITDA margin of 1.2% for Q2 2019, compared to an adjusted EBITDA margin of 0.7% for Q1 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

Quarter Ended

 

Six Months Ended

    

Six Months Ended

$,000 (unaudited)

 

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

409,479

 

$

447,391

 

$

577,881

 

$

856,870

 

$

1,126,543

Net (loss) profit

 

$

(43,658)

 

$

(28,554)

 

$

66,030

 

$

(72,212)

 

$

101,644

Diluted EPS

 

$

(0.24)

 

$

(0.16)

 

$

0.39

 

$

(0.40)

 

$

0.60

Adjusted net (loss) income attributable to the parent

 

$

(22,221)

 

$

(21,894)

 

$

25,648

 

$

(44,115)

 

$

59,323

Adjusted diluted EPS

 

$

(0.13)

 

$

(0.13)

 

$

0.14

 

$

(0.26)

 

$

0.33

Adjusted EBITDA

 

$

5,035

 

$

3,327

 

$

83,000

 

$

8,362

 

$

163,003

Adjusted EBITDA margin

 

 

1.2%

 

 

0.7%

 

 

14.4%

 

 

1.0%

 

 

14.5%

 

* The amounts for prior periods have been restated to reflect the impact of the profit / (loss) from discontinued operations associated with the sale of our Spanish hydroelectric plants.

 

Cash Flow and Balance Sheet

 

Cash used in operations during Q2 2019 was $(37.4) million, with working capital increasing by $59.3 million. Net debt was $478.3 million as of June 30, 2019, up from $419.7 million as of March 31, 2019.

 

Pedro Larrea, Ferroglobe’s Chief Executive Officer commented, “The decline in end market demand continues to put pressure on our sales prices resulting in disappointing results for the quarter.  We expect these headwinds to linger in the second half of the year.  Accordingly, we are focused on operational adjustments and cash generating initiatives, designed to reduce the Company’s risk profile and provide adequate resources to weather this cyclical downturn.”  Mr. Larrea continued, “We are also cutting silicon production and monitoring other parts of the business for further cost reductions and operating efficiencies. The inherent flexibility in the Company’s operating platform and product base is key to positioning the Company for recovery.”

 

 

 

Successful closing of the divestiture of FerroAtlántica, S.A.U.

 

On August 30, 2019 Ferroglobe successfully completed and closed the previously-announced sale of its 100% interest in subsidiary FerroAtlántica, S.A.U. (“FerroAtlántica”) to investment vehicles affiliates with TPG Sixth Street Partners.  The transaction, valued at €170 million, provides the Company with gross proceeds of €156.4 million, after closing adjustments.  Further details on this transaction appear in a separate press release issued concurrently herewith.

 

Other recent developments

 

Ferroglobe is making progress in pursuing financing alternatives and other opportunities to improve its capital structure. The terms, timing and structure of such transaction(s) will depend on market conditions and ongoing discussions in the coming weeks. The Company is targeting closing this refinancing around the end of Q3 2019.

 

To reduce corporate overhead costs and optimize operations, the Company is moving its headquarters from London (U.K.) to Madrid (Spain).  This move – expected to conclude in Q4 2019 - will consolidate key corporate functions in a single location, enhancing efficiency and management effectiveness in a lower cost environment.

 

To improve its production platform and release working capital, the Company has idled its silicon metal production facility at Polokwane (South Africa) and restarted one furnace at Sabon (Spain), reducing annual production capacity by 39,000 tons.

 

Discussion of Second Quarter 2019 Results

 

Sales

 

Sales for Q2 2019 were $409.5 million, down 8.5% compared to $447.4 million in Q1 2019. For Q2 2019, total shipments were down 6.0% and the average selling price was down 3.2% compared with Q1 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

 

    

Quarter Ended

 

 

 

Six Months Ended

    

Six Months Ended

 

 

 

 

June 30, 2019

 

March 31, 2019

 

Change

 

June 30, 2018

 

Change

 

June 30, 2019

 

June 30, 2018

 

Change

Shipments in metric tons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

 

54,084

 

 

62,269

 

-13.1%

 

 

85,913

 

-37.0%

 

 

116,353

 

 

177,528

 

-34.5%

Silicon-based Alloys

 

 

79,264

 

 

81,801

 

-3.1%

 

 

78,214

 

1.3%

 

 

161,065

 

 

154,542

 

4.2%

Manganese-based Alloys

 

 

99,555

 

 

103,669

 

-4.0%

 

 

107,457

 

-7.4%

 

 

203,224

 

 

178,633

 

13.8%

Total shipments*

 

 

232,903

 

 

247,739

 

-6.0%

 

 

271,584

 

-14.2%

 

 

480,642

 

 

510,703

 

-5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/MT):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

2,320

 

$

2,358

 

-1.6%

 

$

2,773

 

-16.3%

 

$

2,340

 

$

2,767

 

-15.4%

Silicon-based Alloys

 

$

1,572

 

$

1,669

 

-5.8%

 

$

1,908

 

-17.6%

 

$

1,621

 

$

1,932

 

-16.1%

Manganese-based Alloys

 

$

1,188

 

$

1,172

 

1.4%

 

$

1,304

 

-8.9%

 

$

1,180

 

$

1,332

 

-11.4%

Total*

 

$

1,582

 

$

1,634

 

-3.2%

 

$

1,943

 

-18.6%

 

$

1,609

 

$

2,013

 

-20.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/lb.):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

1.05

 

$

1.07

 

-1.6%

 

$

1.26

 

-16.3%

 

$

1.06

 

$

1.26

 

-15.4%

Silicon-based Alloys

 

$

0.71

 

$

0.76

 

-5.8%

 

$

0.87

 

-17.6%

 

$

0.74

 

$

0.88

 

-16.1%

Manganese-based Alloys

 

$

0.54

 

$

0.53

 

1.4%

 

$

0.59

 

-8.9%

 

$

0.54

 

$

0.60

 

-11.4%

Total*

 

$

0.72

 

$

0.74

 

-3.2%

 

$

0.88

 

-18.6%

 

$

0.73

 

$

0.91

 

-20.1%


* Excludes by-products and other

 

Sales Prices & Volumes By Product

 

During Q2 2019, total product average selling prices decreased by 3.2% versus Q1 2019.  Q2 average selling prices of silicon metal decreased 1.6%, silicon-based alloys decreased 5.8%, and manganese-based alloys increased 1.4%. During Q2 2019, sales volumes decreased by 6.0% versus Q1 2019.  Q2 sales volumes of silicon metal decreased 13.1%, silicon-based alloys decreased 3.1%, and manganese-based alloys decreased 4.0% versus Q1 2019.

 

 

 

 

Cost of Sales

 

Cost of sales was $292.4 million in Q2 2019, a decrease from $329.4 million from Q1 2019.  Cost of sales as a percentage of sales decreased to 71.4% in Q2 2019 from 73.6% for Q1 2019.

 

Other Operating Expenses

 

Other operating expenses was $62.9 million in Q2 2019, an increase from $53.9 million from Q1 2019, which is primarily due to contract termination costs. 

 

Net Loss Attributable to the Parent

 

In Q2 2019, net loss attributable to the Parent was $(40.8) million, or $(0.24) per diluted share, compared to a net loss attributable to the Parent of $(26.8) million, or $(0.16) per diluted share in Q1 2019.

 

Adjusted EBITDA

 

In Q2 2019, adjusted EBITDA was $5.0 million, or 1.2% of sales, compared to adjusted EBITDA of $3.3 million, or 0.7% of sales in Q1 2019.

 

Conference Call

 

Ferroglobe management will review the second quarter results of 2019 during a conference call at 9:00 a.m. Eastern Time on September 4, 2019.

 

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 8287856). International callers should dial +1 914‑495‑8526 (conference ID 8287856). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/mmc/p/9678r4sf.

 

About Ferroglobe

 

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and other ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

 

Forward-Looking Statements

 

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.

 

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.

 

Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

 

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

 

Non-IFRS Measures

 

EBITDA, adjusted EBITDA, adjusted profit per ordinary share, and adjusted profit are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

 

INVESTOR CONTACT:

Gaurav Mehta
EVP – Investor Relations 
Email:   investor.relations@ferroglobe.com

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Income Statement

(in thousands of U.S. dollars, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

Six Months Ended

    

Six Months Ended

 

    

June 30, 2019

 

March 31, 2019*

 

June 30, 2018*

 

June 30, 2019

 

June 30, 2018*

Sales

  

$

409,479

 

$

447,391

 

$

577,881

 

$

856,870

 

$

1,126,543

Cost of sales

  

 

(292,432)

 

 

(329,368)

 

 

(343,753)

 

 

(621,800)

 

 

(664,289)

Other operating income

  

 

14,530

 

 

14,021

 

 

8,512

 

 

28,551

 

 

15,295

Staff costs

  

 

(74,852)

 

 

(74,263)

 

 

(88,180)

 

 

(149,115)

 

 

(170,072)

Other operating expense

  

 

(62,924)

 

 

(53,917)

 

 

(74,212)

 

 

(116,841)

 

 

(143,303)

Depreciation and amortization charges, operating allowances and write-downs

  

 

(30,204)

 

 

(30,370)

 

 

(29,118)

 

 

(60,574)

 

 

(55,905)

Bargain purchase gain

 

 

 —

 

 

 —

 

 

44,633

 

 

 —

 

 

44,633

Impairment losses

 

 

(1,195)

 

 

(140)

 

 

 —

 

 

(1,335)

 

 

 —

Other gain (loss)

 

 

275

 

 

(397)

 

 

2,752

 

 

(122)

 

 

2,715

Operating (loss) profit

 

 

(37,323)

 

 

(27,043)

 

 

98,515

 

 

(64,366)

 

 

155,617

Net finance expense

  

 

(15,047)

 

 

(13,823)

 

 

(13,233)

 

 

(28,870)

 

 

(25,300)

Financial derivatives (loss) gain

 

 

(295)

 

 

1,264

 

 

2,832

 

 

969

 

 

1,067

Exchange differences

  

 

5,080

 

 

(1,479)

 

 

(8,708)

 

 

3,601

 

 

(7,979)

(Loss) profit before tax

  

 

(47,585)

 

 

(41,081)

 

 

79,406

 

 

(88,666)

 

 

123,405

Income tax benefit (expense)

  

 

4,890

 

 

8,210

 

 

(13,970)

 

 

13,100

 

 

(27,687)

(Loss) profit for the period from continuing operations

 

 

(42,695)

 

 

(32,871)

 

 

65,436

 

 

(75,566)

 

 

95,718

(Loss) profit for the period from discontinued operations

 

 

(963)

 

 

4,317

 

 

594

 

 

3,354

 

 

5,926

(Loss) profit for the period

 

 

(43,658)

 

 

(28,554)

 

 

66,030

 

 

(72,212)

 

 

101,644

Loss attributable to non-controlling interest

  

 

2,835

 

 

1,724

 

 

1,408

 

 

4,559

 

 

2,474

(Loss) profit attributable to the parent

  

$

(40,823)

 

$

(26,830)

 

$

67,438

 

$

(67,653)

 

$

104,118

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

(7,119)

 

$

3,327

 

$

127,633

 

$

(3,792)

 

$

211,522

Adjusted EBITDA

 

$

5,035

 

$

3,327

 

$

83,000

 

$

8,362

 

$

163,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

169,123

 

 

169,123

 

 

171,987

 

 

169,123

 

 

171,982

Diluted

 

 

169,123

 

 

169,123

 

 

172,127

 

 

169,123

 

 

172,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.24)

 

$

(0.16)

 

$

0.39

 

$

(0.40)

 

$

0.61

Diluted

 

$

(0.24)

 

$

(0.16)

 

$

0.39

 

$

(0.40)

 

$

0.60

 

* The amounts for prior periods have been restated to reflect the impact of the profit / (loss) from discontinued operations associated with the sale of our Spanish hydroelectric plants.

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

    

2019

    

2019

    

2018

ASSETS

Non-current assets

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 

204,089

 

$

203,472

 

$

202,848

Other intangible assets

 

 

 

62,778

 

 

69,399

 

 

51,822

Property, plant and equipment

 

 

 

784,272

 

 

890,436

 

 

888,862

Other non-current financial assets

 

 

 

20,042

 

 

54,979

 

 

70,343

Deferred tax assets

 

 

 

22,915

 

 

7,135

 

 

14,589

Non-current receivables from related parties

 

 

 

2,276

 

 

2,247

 

 

2,288

Other non-current assets

 

 

 

9,746

 

 

10,435

 

 

10,486

Total non-current assets

 

 

 

1,106,118

 

 

1,238,103

 

 

1,241,238

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

504,527

 

 

451,753

 

 

456,970

Trade and other receivables

 

 

 

158,252

 

 

127,992

 

 

155,996

Current receivables from related parties

 

 

 

3,000

 

 

6,556

 

 

14,226

Current income tax assets

 

 

 

31,610

 

 

26,855

 

 

27,404

Other current financial assets

 

 

 

7,840

 

 

2,191

 

 

2,523

Other current assets

 

 

 

12,289

 

 

13,721

 

 

8,813

Cash and cash equivalents

 

 

 

187,673

 

 

216,627

 

 

216,647

Assets and disposal groups classified as held for sale

 

 

 

97,862

 

 

 —

 

 

 —

Total current assets

 

 

 

1,003,053

 

 

845,695

 

 

882,579

Total assets

 

$

 

2,109,171

 

$

2,083,798

 

$

2,123,817

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

Equity

 

$

 

816,080

 

$

855,099

 

$

884,372

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Deferred income

 

 

 

8,108

 

 

11,676

 

 

1,434

Provisions

 

 

 

80,218

 

 

76,613

 

 

75,787

Bank borrowings

 

 

 

 —

 

 

131,366

 

 

132,821

Lease liabilities

 

 

 

18,629

 

 

66,992

 

 

53,472

Debt instruments

 

 

 

342,806

 

 

342,222

 

 

341,657

Other financial liabilities

 

 

 

24,585

 

 

27,109

 

 

32,788

Other non-current liabilities

 

 

 

25,246

 

 

25,080

 

 

25,030

Deferred tax liabilities

 

 

 

64,520

 

 

61,887

 

 

77,379

Total non-current liabilities

 

 

 

564,112

 

 

742,945

 

 

740,368

Current liabilities

 

 

 

 

 

 

 

 

 

 

Provisions

 

 

 

44,007

 

 

47,619

 

 

40,570

Bank borrowings

 

 

 

172,890

 

 

19,100

 

 

8,191

Lease liabilities

 

 

 

8,692

 

 

20,616

 

 

12,999

Debt instruments

 

 

 

10,938

 

 

2,734

 

 

10,937

Other financial liabilities

 

 

 

52,594

 

 

51,618

 

 

52,524

Payables to related parties

 

 

 

9,884

 

 

12,199

 

 

11,128

Trade and other payables

 

 

 

252,372

 

 

228,649

 

 

256,823

Current income tax liabilities

 

 

 

1,766

 

 

4,369

 

 

2,335

Other current liabilities

 

 

 

95,150

 

 

98,850

 

 

103,570

Liabilities associated with assets classified as held for sale

 

 

 

80,686

 

 

 —

 

 

 —

Total current liabilities

 

 

 

728,979

 

 

485,754

 

 

499,077

Total equity and liabilities

 

$

 

2,109,171

 

$

2,083,798

 

$

2,123,817

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Cash Flows

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

 

Six Months Ended

    

Six Months Ended

 

    

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

 

June 30, 2019

 

June 30, 2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the period

 

$

(43,658)

 

$

(28,554)

 

$

66,030

 

 

$

(72,212)

 

$

101,644

Adjustments to reconcile net (loss) profit
to net cash used by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

(5,215)

 

 

(6,704)

 

 

14,302

 

 

 

(11,919)

 

 

29,970

Depreciation and amortization charges,
operating allowances and write-downs

 

 

31,327

 

 

32,077

 

 

30,309

 

 

 

63,404

 

 

58,325

Net finance expense

 

 

16,145

 

 

14,756

 

 

14,412

 

 

 

30,901

 

 

27,568

Financial derivatives loss (gain)

 

 

295

 

 

(1,264)

 

 

(2,832)

 

 

 

(969)

 

 

(1,067)

Exchange differences

 

 

(5,080)

 

 

1,479

 

 

8,708

 

 

 

(3,601)

 

 

7,979

Impairment losses

 

 

1,195

 

 

140

 

 

 —

 

 

 

1,335

 

 

 —

Bargain purchase gain

 

 

 —

 

 

 —

 

 

(44,633)

 

 

 

 —

 

 

(44,633)

Share-based compensation

 

 

933

 

 

1,332

 

 

33

 

 

 

2,265

 

 

732

Other adjustments

 

 

(275)

 

 

397

 

 

(2,752)

 

 

 

122

 

 

(2,715)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease  in inventories

 

 

(46,950)

 

 

35

 

 

(59,050)

 

 

 

(46,915)

 

 

(166,531)

(Increase) decrease in trade receivables

 

 

(32,316)

 

 

28,371

 

 

(19,257)

 

 

 

(3,945)

 

 

(19,770)

Increase (decrease) in trade payables

 

 

21,625

 

 

(22,967)

 

 

476

 

 

 

(1,342)

 

 

70,851

Other

 

 

28,472

 

 

9,787

 

 

6,817

 

 

 

38,259

 

 

(42,953)

Income taxes paid

 

 

(540)

 

 

(1,680)

 

 

(14,186)

 

 

 

(2,220)

 

 

(24,168)

Interest paid

 

 

(3,341)

 

 

(18,508)

 

 

(2,957)

 

 

 

(21,849)

 

 

(20,258)

Net cash (used) provided by operating activities

 

 

(37,383)

 

 

8,697

 

 

(4,580)

 

 

 

(28,686)

 

 

(25,026)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and finance income received

 

 

486

 

 

390

 

 

2,273

 

 

 

876

 

 

2,352

Payments due to investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of subsidiary

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

 

 

(20,379)

Other intangible assets

 

 

(50)

 

 

(134)

 

 

(2,221)

 

 

 

(184)

 

 

(2,924)

Property, plant and equipment

 

 

(7,128)

 

 

(13,448)

 

 

(29,786)

 

 

 

(20,576)

 

 

(52,317)

Other

 

 

(627)

 

 

 —

 

 

 —

 

 

 

(627)

 

 

 —

Disposals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current assets

 

 

 —

 

 

 —

 

 

12,734

 

 

 

 —

 

 

12,734

Other

 

 

1,638

 

 

1,759

 

 

1,904

 

 

 

3,397

 

 

5,914

Net cash used by investing activities

 

 

(5,681)

 

 

(11,433)

 

 

(15,096)

 

 

 

(17,114)

 

 

(54,620)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 —

 

 

 —

 

 

(10,321)

 

 

 

 —

 

 

(10,321)

Payment for debt issuance costs

 

 

 —

 

 

(705)

 

 

 —

 

 

 

(705)

 

 

(4,476)

Repayment of other financial liabilities

 

 

 —

 

 

 —

 

 

(33,096)

 

 

 

 —

 

 

(33,096)

Increase/(decrease) in bank borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

39,649

 

 

31,850

 

 

37,668

 

 

 

71,499

 

 

220,032

Payments

 

 

(18,252)

 

 

(20,811)

 

 

 —

 

 

 

(39,063)

 

 

(106,514)

Proceeds from stock option exercises

 

 

 —

 

 

 —

 

 

240

 

 

 

 —

 

 

240

Other amounts paid due to financing activities

 

 

(7,236)

 

 

(5,708)

 

 

(4,648)

 

 

 

(12,944)

 

 

(7,635)

Net cash provided (used) by financing activities

 

 

14,161

 

 

4,626

 

 

(10,157)

 

 

 

18,787

 

 

58,230

Total net cash flows for the period

 

 

(28,903)

 

 

1,890

 

 

(29,833)

 

 

 

(27,013)

 

 

(21,416)

Beginning balance of cash and cash equivalents

 

 

216,627

 

 

216,647

 

 

197,669