EQS-News: AMAG Austria Metall AG: Solid half-year result despite continuing market weakness, especially in Europe

EQS-News: AMAG Austria Metall AG / Key word(s): Half Year Results
AMAG Austria Metall AG: Solid half-year result despite continuing market
weakness, especially in Europe

25.07.2024 / 07:20 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Ranshofen, July 25, 2024

 

AMAG Austria Metall AG: Solid half-year result despite continuing market
weakness, especially in Europe

• Higher aluminium price in Q2/2024 and broad positioning of the AMAG
Group noticeably cushion subdued demand for aluminium rolled products
from certain industries
• Revenue of EUR 707.7 million down on the prior year due to price and
volume factors (H1/2023: EUR 796.4 million)
• EBITDA of EUR 95.3 million below the very strong first half of 2023
(EUR 117.8 million), but better than second half of 2023
• Net income after taxes of EUR 33.4 million (H1/2023: EUR 51.0 million)
• Cashflow from operating activities grows to EUR 75.7 million (H1/2023:
EUR 68.0 million)
• Outlook for 2024: Improved earnings forecast of EUR 160 million to
EUR 180 million EBITDA, based on current assumptions regarding
aluminium price, shipments and economic development

The challenging environment at the beginning of the year continued in the
second quarter of 2024. In the Rolling Division, demand for aluminium
rolled products remained subdued in certain industries, particularly in
Europe. The high product diversity and international customer structure
had a stabilising effect. Thanks to its stake in the largest smelter in
North and South America, the AMAG Group benefited from the rising
aluminium price in the second quarter of 2024 and continued to generate
solid earnings in the Metal Division. In the Casting Division, shipments
of recycled cast alloys remained good in a difficult environment in the
automotive industry.

Dr. Helmut Kaufmann, CEO of AMAG Austria Metall AG: „With EBITDA of around
EUR 95 million, we are at a satisfactory level despite the challenging
market situation. Our strategic investment in the smelter in Canada also
proved its worth once again, strengthening the AMAG Group’s earnings. In
Ranshofen, we were able to further expand our shipment volumes in the
aviation industry, among others. In the automotive industry, our broad
customer base is helping us in an environment characterised by
uncertainty. For the full year, we expect a strong operating profit
(EBITDA) of EUR 160 million to EUR 180 million.“

The AMAG group’s revenue totalled EUR 707.7 million in the first half of
2024 (H1/2023: EUR 796.4 million). At 214,100 tonnes, total shipments in
tonnes were below the previous year’s level (H1/2023: 221,200 tonnes),
mainly reflecting the continued reduced demand for aluminium rolled
products from certain industries, particularly in Europe.

EBITDA (earnings before interest, taxes, depreciation and amortisation)
amounted to EUR 95.3 million in the first half of 2024 (H1/2023:
EUR 117.8 million). The Metal Division benefited from stable production at
full capacity and was thus able to take advantage of the higher aluminium
price level in the second quarter of 2024. The Casting Division achieved
good shipments and earnings performance despite the loss of momentum in
the automotive industry. In the Rolling Division, the challenging market
environment, particularly in Europe, led to a reduction in shipments
overall. The broad and flexible positioning made it possible to reflect
significant shifts in the product mix.

Depreciation and amortisation in the first six months of the reporting
year amounted to EUR -44.6 million (H1/2023: EUR -42.4 million). The
earnings before interest and taxes (EBIT) of EUR 50.8 million reflects a
solid first half of 2024 (H1/2023: EUR 75.4 million). The AMAG group
generated net income after taxes of EUR 33.4 million in the current
reporting period (H1/2023: EUR 51.0 million).

Cashflow from operating activities grew to EUR 75.7 million (H1/2023:
EUR 68.0 million). While the solid operating profit (EBITDA) had a
positive impact, the usual increase in receivables during the year had a
particularly noticeable effect on working capital. Cashflow from investing
activities totalled EUR -48.5 million in the first six months of the
reporting year, compared to EUR -50.6 million the first half of 2023. This
resulted in a free cashflow of EUR 27.2 million after EUR 17.4 million in
the prior year.

Net financial debt increased to EUR 390.0 million as of 30 June 2024,
compared with EUR 364.3 million at the end of 2023. The AMAG Group’s
equity stood at EUR 729.5 million as of 30 June 2024 (31 December 2023:
EUR 746.3 million). At 44.6 %, the equity ratio remained high as at the
end of June 2024 (31 December 2023: 46.1 %).
 

Outlook 2024:

In the first two quarters of 2024, the AMAG Group generated a solid
earnings performance in a difficult environment thanks to its broad
positioning. Further economic development, particularly in Europe, will
play an important role in the second half of 2024. At present, sentiment
on the European market remains subdued.[1][1] The current GDP
forecast[2][2] for the eurozone is 0.9%. Growth in Germany is expected to
be 0.4%, while stagnation is anticipated for Austria.

Dr. Helmut Kaufmann, CEO of AMAG: „The current economic environment in
Europe is primarily dampening the short-term growth prospects for
aluminium rolled products in certain AMAG sales markets. Almost unaffected
by this, demand for aluminium products is expected to rise steadily in the
medium to long term according to the CRU (Commodity Research Unit). We
will continue to utilise our strengths to follow this growth trend. In any
case, the operating performance is strong and enabled the EBITDA floor to
be raised to EUR 160 million for 2024.“

In detail, the further development of earnings in the Metal Division will
depend heavily on the aluminium price and raw material costs (especially
alumina). High production volumes at the Alouette smelter in Canada are
expected to remain unchanged. Despite the challenging situation in the
automotive sector, shipments in the Casting Division are anticipated to be
on the level of the prior year. In the Rolling Division, sales volumes are
expected to improve in 2024 compared to the prior year.

From today’s perspective, the AMAG Management Board expects full-year
EBITDA between EUR 160 million and EUR 180 million based on current
assumptions regarding aluminium prices, shipments and economic trends.
Compared to the previous EBITDA estimate for 2024, the lower limit has
thus been raised by EUR 10 million, from EUR 150 million to
EUR 160 million.
 

AMAG key figures: 

in EUR million  Q2/2024 Q2/2023 Change H1/2024 H1/2023 Change
Shipments in tonnes 110,000 110,700 -0.6 % 214,100 221,200 -3.2 %
of which external 101,200 102,600 -1.4 % 196,700 205,400 -4.2 %
shipments in tonnes
Revenue 371.9 391.6 -5.0 % 707.7 796.4 -11.1 %
EBITDA 53.0 57.0 -7.1 % 95.3 117.8 -19.1 %
EBIT 30.6 35.9 -14.7 % 50.8 75.4 -32.7 %
Net income aftes taxes 20.1 24.2 -16.8 % 33.4 51.0 -34.5 %
Cashflow from operating 40.1 32.5 23.5 % 75.7 68.0 11.2 %
activities
Cash flow from investing -22.5 -27.1 17.1 % -48.5 -50.6 4.2 %
activities
Employees^1) 2,242 2,256 -0.6 % 2,241 2,238 0.1 %

  

in EUR million  June 30, 2024 December 31, 2023 Change
Equity 729.5 746.3 -2.2 %
Equity ratio in % 44.6 % 46.1 %  
Gearing 53.5 % 48.8 %  

[1) Average number of employees (full time equivalents) including
temporary staff, excluding apprentices. Includes the personnel from the
Aloutte smelter (20 %) and AMAG components.]

  

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
aerospace, 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 maintaining an exemplary net ecological impact. At AMAG components,
based in Übersee am Chiemsee (Germany), ready-to-install metal parts are
also manufactured for the aerospace industry.

 

Investor contact Press contact
Mag. Christoph M. Gabriel, BSc MMag. Alexandra Hanischläger, MBA
Head of Investor Relations Head of Communication and Marketing
AMAG Austria Metall AG AMAG Austria Metall AG
Lamprechtshausener Straße 61 Lamprechtshausener Straße 61
5282 Ranshofen, Austria 5282 Ranshofen, Austria
Tel: +43 (0) 7722-801-3821 Tel: +43 (0) 7722-801-2673
Email: investorrelations@amag.at Email: publicrelations@amag.at
   
Website: www.amag-al4u.com  

 

Note

The forecasts, budgets and forward-looking assessments and statements
contained in this publication were compiled on the basis of all
information available to AMAG as of July 12, 2024. In the event that the
assumptions underlying these forecasts prove to be incorrect, targets be
missed, or risks materialise, actual results may diverge from those
currently anticipated. We are not obligated to revise these forecasts in
the light of new information or future events.

This publication was prepared and the data contained in it verified with
the greatest possible care. Nevertheless, misprints and rounding and
transmission errors cannot be ruled out entirely. In particular, AMAG and
its representatives do not assume any responsibility for the completeness
and correctness of information included in this publication. This
publication is also available in German. In cases of doubt, the
German-language version takes precedence.

This publication does not comprise either a recommendation or a
solicitation to either purchase or sell securities of AMAG.  

[3]^[1] See also the Purchasing Managers Index, Bloomberg

[4]^[2] Austrian Institute of Economic Research (WIFO), Economic Forecast
2/2024, June 2024

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25.07.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: AMAG Austria Metall AG
Lamprechtshausener Straße 61
5282 Ranshofen
Austria
Phone: +43 7722 801 0
Fax: +43 7722 809 498
E-mail: investorrelations@amag.at
Internet: www.amag-al4u.com
ISIN: AT00000AMAG3
WKN: A1JFYU
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Munich, Stuttgart; Vienna Stock Exchange (Official Market)
EQS News ID: 1953203

 
End of News EQS News Service

1953203  25.07.2024 CET/CEST

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