Acerinox to post profit

Acerinox SA expects to make its first profit since the second quarter last year as European and US customers replenish dwindling stockpiles. Acerinox is operating at 75% to 80% of record capacity. Production in the three months through September will be much better than in previous quarters. The company has announced that, in the third quarter, they will change from red to black numbers. They have cited that there are signs, mainly in the US, that final demand is improving. The company is betting that demand will continue to recover in the US to help Acerinox resume profit growth. To fuel future earnings, the company is building a plant in Malaysia to add to facilities in Spain, the US and South Africa. The company may soon announce an increase in prices for its base products in the US. In Europe, Acerinox wants larger companies such as ThyssenKrupp AG to lead the market in raising prices. Acerinox increased base prices twice in Europe this year.
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