Financial result Q3 2015

03.11.2015

AMAG reports revenue and earnings growth

  • Shipment volumes up 8 % to 97,600 tonnes
  • Revenue grows 16 % to EUR 233 million
  • EBITDA improves 6 % to EUR 33.9 million
  • Ramp-up of new hot rolling mill continues successfully; AMAG 2020 plant expansion with cold rolling mill and finishing plants running as planned
  • New electricity terms for Alouette smelter improve cost position and risk profile from 2017
  • 2015 outlook: EBITDA of around EUR 130 million remains achievable

 

AMAG Austria Metall AG reports year-on-year growth in both revenue and operating earnings (EBITDA) in the third quarter of 2015.

Revenue of EUR 232.9 million was 16.2 % above the EUR 200.5 million reported in the third quarter of 2014. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 5.9 % to EUR 33.9 million (Q3 2014: EUR 32.0 million). In a quarter-on-quarter comparison, the average aluminium price was down by 16 % from 2,008 USD / tonne (Q3 2014) to 1,621 USD / tonne.

 

Helmut Wieser, AMAG's CEO: "Our Casting and Rolling divisions have made a significant contribution to our earnings growth through boosting shipment volumes and a higher proportion of specialty products. This has also offset the effects of the falling aluminium price."

 

The AMAG Group achieved EUR 16.7 million of operating profit (EBIT) in the third quarter of 2015, compared with EUR 18.1 million in the previous year. Consolidated net income after tax stood at EUR 12.5 million (Q3 2014: EUR 18.3 million).

 

AMAG reports solid balance sheet structure

The equity of the AMAG Group increased from EUR 623.9 million at the end of 2014 to EUR 631.2 million as of the end of September 2015. The equity ratio also improved from 57.1 % to 58.3 %.

Net financial debt also remains at a very solid level of EUR 111.4 million (December 31, 2014: EUR 93.0 million). This is reflected in continued low gearing of 17.6 % (December 31, 2014: 14.9 %).


Plant expansion

The AMAG 2014 plant expansion project is almost entirely completed. The new hot rolling mill is being ramped up to schedule. Production volumes in the third quarter of 2015 registered significant growth compared with the first two quarters of the year.

 

Work on the AMAG 2020 strategy project is also running as planned. Orders for the cold rolling mill, as well as the finishing plants, have been awarded. Construction is scheduled to start in March 2016, commissioning for 2017. Overall, the EUR 300 million expansion programme will boost production capacity to more than 300,000 tonnes, and create further 250 jobs at the Ranshofen site.


New electricity terms for Alouette smelter

Improved electricity purchasing terms and an additional 70 MW electricity block (based on 965 MW input power) have been negotiated for organic growth for the 2017 to 2029 period for the Alouette smelter in Canada, in which AMAG holds a 20 % interest. During this period, the electricity price will be based on the market price for aluminium. This agreement will significantly improve the cost position and risk profile in relation to fluctuations in the aluminium price and the currency exchange rate.

 

Market trend: growth prospects unchanged

Demand for primary aluminium and aluminium rolled products will grow by around 5 % per year up to 2019, according to recent estimates from the CRU market research institute. All sectors are anticipated to report growth in this context. The transportation area stands out with an annual increase in demand for aluminium rolled products of around 11 %.

 

Helmut Wieser, AMAG's CEO: "Many discussions with customers, especially from the aerospace and automotive industries, confirm the growth trend. Growing production figures and demand for lightweight construction and energy efficiency are driving the aluminium business. Our specialty products, in particular, will benefit from this growth. Demand for rolled products for automotive bodies is expected to jump fourfold over the next five years."

 

FY 2015 outlook

The Management Board retains its positive sentiment for the 2015 financial year and expects the company's EBITDA to report year-on-year growth (2014: EUR 114.7 million), despite the decline in the aluminium price. EBITDA of around EUR 130 million also remains achievable after the positive earnings trend in the third quarter 2015, as long as the average market price for aluminium during the fourth quarter 2015 is not below its level as of the end of September 2015.

 

 

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About the AMAG Group

AMAG is a leading Austrian premium supplier of high-quality aluminium cast and flat rolled products for highly varied industries such as the aircraft, automotive, sports equipment, lighting, mechanical engineering, construction and packaging industries. The Canadian smelter Alouette, in which AMAG holds a 20 % interest, produces high-quality primary aluminium while safeguarding an exemplary eco-balance.

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