The Cremonese Acciaieria Arvedi is on the national steel podium in terms of turnover after Acciaierie d’Italia and Marcegaglia, with 2022 revenues of 3.59 billion euros and a profit of 404.6 million. The data emerged from the “Steel Balance Sheets 2023” analysis, the main Siderweb study which investigated the economic-financial results of the steel industry from a strategic and prospective perspective, through the reading and interpretation of the data from the financial statements of the three-year period 2020-22. Now in its 15th edition, the study is carried out in collaboration with professors Claudio Teodori and Cristian Carini of the University of Brescia and is supported by Bper Banca and Regesta. The presentation of the study took place this afternoon at the Acquaviva estate in Travagliato (Brescia).
According to the analysis, after the collapse in profits in 2020 and the incredible recovery in 2021, 2022 consolidated the return of national steel to activity levels now well above those before the crisis, further strengthening the overall economic situation of the Italian steel industry.
“Bilanci d’Acciaio is a unique studio in Italy – underlined the CEO of Siderweb, Paolo Morandi -. This year we have introduced two important innovations: the first concerns the new digital look of the analysis, available from November on siderweb.com. An area where you can find the financial statements of the steel sector, which can provide useful elements of analysis and in-depth analysis, to orient yourself on the market. The second innovation is linked to the development of Siderweb: our new 5-year strategic plan aims at ever greater involvement in the community of user sectors. For this reason, a second chapter of the analysis will be named after them, which will be presented in November with a dedicated event”.
The analysis concerns the balance sheets of 1,698 steel production, primary processing, service and distribution companies. “The growth in turnover and production value in 2022 is very high, close to 17%: considering the entire three-year period 2020-22, the average annual development was 37%, confirming activity levels now well above those before crisis – explained Cristian Carini, professor at the University of Brescia -. On these he influenced both the growth in quantities and the increase in prices, which have had a non-negligible importance, which continues also in 2023″. The impact of added value remained unchanged. Despite this, Ebitda increased, reaching the psychological threshold of 10% incidence on turnover. “Increase induced – Carini continued – by the greater absorption of labor costs, by almost 1 percentage point, due to the growth in sales”. In 2022, a general increase in profitability indices was then recorded, which comes after the exceptional positive variations of 2021. The exercise “has allowed the steel sector to further strengthen the results of 2021 and, in many companies, this is the best data in recent years” said Claudio Teodori, professor at the University of Brescia.
HOW 2023 IS GOING – Steel demand in Italy is expected to decline by 7.2% in 2023, with consumption of around 23.3 million tonnes. The plus sign should return in 2024: +4.8% with 24.4 million tonnes. In Europe, the automotive recovery continues, but car production is not expected to reach pre-pandemic levels in 2024. Residential construction is also affected by high interest rates, material costs and labor shortages, while the momentum of infrastructure investments remains stable.
THE INTERNATIONAL COMPARISON – Sales revenues in 2022 grew both in Italy and in other EU countries. “In particular, in Italy the most significant increases are those recorded in the production of stainless, common and alloy steels – analyzed Gianfranco Tosini of the Siderweb research office -. In the other EU countries, the strongest variations are those in tube manufacturing, stainless steel production, distribution and service centres”. The profitability of core operations (Ebit/revenues) increased in Italy for producers of common and alloy steels and producers of stainless steels; decreased slightly for tube manufacturing and distributors plus service centers. In the other EU countries, the profitability of ordinary operations decreased for producers of common and alloy steels, producers of stainless steels and distributors plus service centers, and increased only in the tube manufacturing cluster. “The level of capitalization of Italian groups, although it has increased by 3 points – Tosini said -, remains lower than the average of the other EU countries. The gap can be explained by the high level of undercapitalization of the Acciaierie d’Italia group”.
BUSINESS SENTIMENT – Siderweb submitted a questionnaire to a representative sample of the national steel supply chain (around 60 companies, mainly belonging to three sectors: 29% production, 9% service centers, 28% distribution). The questions concerned expectations for the 2023 budget results and the prospects for 2024. Two trends emerged: growth or stability of the activity; concern about economic results, which are generally expected to decline. Business sentiment has in fact changed colour: from an undisputed blue to a widespread grey. “On the one hand, it certainly couldn’t be thought that certain results could be achieved for another few years and a decline was inevitable – commented Teodori -; on the other hand, the economic context shows clear signs of a contraction in growth, which affects the perception and choices of companies”.
The main problems are increase in energy costs (18%), loss of competitiveness (16.7%) and slowdown in production/marketing (14.7%); followed by unfair competition (dumping) and the increase in the cost of raw materials and semi-products (62% declare cost increases of between 10 and 30%). According to what emerged, turnover will continue to grow, although less widespread, while margins will tend to contract, especially in 2023. “All this considering that the increase in sales prices, which characterized 2022, tends to reverse direction” specified Teodori. Uncertainty then, especially connected to the cost of money, could change investment plans, within which innovation becomes increasingly important. In 2024, in fact, 52% of companies have declared that they will review their investment plans, postponing or eliminating some parts, while 43% do not foresee any changes.
THE CREMONESE NUMBERS – The following link allows you to open a table with the main economic indicators relating to Cremonese companies in the steel sector.
STEEL DATA IN CREMONA
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2023-10-26 16:52:30
#Balance #sheets #steel #recovery #consolidated #Cremonaoggi
