In the first three months of 2022, AMAG Austria Metall AG has successfully continued its positive performance from the 2021 financial year and achieved the highest level of quarterly earnings in the company’s history. This positive trend especially reflects significant growth in shipment volumes and product mix optimisations at the Ranshofen site. A very high aluminium price level is also having a positive impact on earnings in the Metal Division.
AMAG Group revenues reported marked growth to EUR 399.0 million (Q1/2021: EUR 251.2 million) thanks to both higher shipment volumes and the significantly higher aluminium price. In detail, shipment volumes of 104,600 tonnes represent growth of more than 6 % compared to the same quarter of the previous year (Q1/2021: 98,500 tonnes).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) more than doubled to EUR 68.0 million (Q1/2021: EUR 30.3 million).
The Metal Division benefited from both stable production levels and a high aluminium
price. Its EBITDA also doubled year-on-year to EUR 20.5 million (Q1/2021:
EUR 10.3 million). The shift in shipment volumes of around 10,000 tonnes as of the
reporting date will have a positive impact on EBITDA in the second quarter of 2022.
In a challenging market environment, the Casting Division maintained its high level of
shipment volumes from the first quarter of 2021 and additionally benefited from a positive
price trend. EBITDA reported significant growth to EUR 5.1 million (Q1/2021:
EUR 3.5 million).
In the Rolling Division, continued high demand for aluminium rolled products was
leveraged for further growth. Shipment volumes were up by almost 11 % to
60,100 tonnes (Q1/2021: 54,300 tonnes). The division’s high level of productivity,
optimisations in its product mix and a positive price trend, especially in the industrial
applications area, are clearly reflected in its earnings, with EBITDA up by around 150 %
to EUR 43.3 million compared with the first quarter of 2021 (Q1/2021: EUR 17.4 million).
After taking into account depreciation and amortisation of EUR -21.6 million, AMAG
Group reported a fivefold increase in earnings before interest and taxes (EBIT) to
EUR 46.3 million (Q1/2021: EUR 9.3 million).
Earnings after taxes of EUR 32.5 million reflect an excellent first quarter of 2022
(Q1/2021: EUR 5.1 million).
Cash flow from operating activities of EUR -130.3 million mainly reflects the higher
level of inventory financing as a consequence of the higher aluminium price (Q1/2021:
EUR 3.7 million). With cash flow from investing activities almost unchanged at
EUR -15.2 million (Q1/2021: EUR -15.8 million), this results in free cash flow of
EUR -145.5 million (Q1/2021: EUR -12.2 million).
Net financial debt amounted to EUR 491.6 million as of March 31, 2022, primarily
reflecting the higher level of inventory financing (December 31, 2021:
EUR 346.1 million). Liquidity stood at EUR 127.9 million as of March 31, 2022,
compared to EUR 171.4 million as of December 31, 2021.
Outlook for 2022:
Despite an excellent start to 2022, the further outlook is characterised by elevated
uncertainties, particularly due to the Ukraine conflict and COVID-19-related lockdowns
(as currently in China). Labour shortages as well as impaired supply chains remain
Gerald Mayer, CEO of AMAG Austria Metall AG, comments: “The start to 2022 has been
successful in operational terms. We were able to leverage the positive market
environment and generate the highest quarterly earnings in AMAG's history. The order
intake situation is at a very good level and secured for the coming months. AMAG's future
business performance depends to a large extent on general economic developments
and, at the Ranshofen site, on energy supply risks. Nevertheless, we currently expect
full-year EBITDA to exceed EUR 200 million.”
With respect to the demand trend for aluminium products, a continuing positive
development for the next years is expected, according to the latest forecasts of the
Commodity Research Unit (CRU).