Spanish steelmaker Acerinox beat expectations for first quarter net profit on Thursday, driven by growth in its U.S. operations, as it forecast strong core earnings in the second quarter.

Net profit was 136 million euros ($150 million), well above average analyst expectations of 83 million euros, according to Refinitiv data. Its shares rose 3.5% in early trading.

Acerinox sank into the red in late 2022 as soaring energy costs stemming from Russia's invasion of Ukraine took a toll on the steel market after the post-COVID economic recovery had briefly turned its mills into cash machines in late 2021.

Robust demand for steel in early 2023 in the United States, its biggest market, offset persisting difficulties in Europe, it said.

"The European market continues to be impacted by uncertainties resulting from the invasion in Ukraine and the effects of inflation, especially in relation to energy prices," the company said in a statement.

Acerinox's earnings before interest, taxes, depreciation and amortization rose to 226 million euros, a figure it said it expected to be higher in the second quarter thanks "to the robustness of the high-performance alloys sector".

The company said in January it would invest $244 million to raise annual capacity by 20%, or 200,000 tonnes, at its largest U.S. stainless steel factory.

($1 = 0.9054 euros) (Reporting by Matteo Allievi and Natalia Siniawski, editing by Inti Landauro and John Stonestreet)