EQS-News: AMAG Austria Metall AG: Record earnings in FY 2021 with shipment volumes returning to pre-crisis levels

EQS-News: AMAG Austria Metall AG / Key word(s): Annual Results
AMAG Austria Metall AG: Record earnings in FY 2021 with shipment volumes
returning to pre-crisis levels

17.02.2022 / 07:30
The issuer is solely responsible for the content of this announcement.

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Ranshofen, February 17, 2022

AMAG Austria Metall AG: Record earnings in FY 2021 with shipment volumes
returning to pre-crisis levels

– Significant growth in revenue and earnings due to stable production,
high productivity and attractive market environment in the primary
aluminium sector

– Revenue of EUR 1,259.4 million clearly above the previous year’s level
due to increased shipment volumes and high aluminium prices (2020: EUR
904.2 million)

– EBITDA achieves significant growth of +72 % to EUR 186.2 million (2020:
EUR 108.2 million)

– Net income after taxes up almost sixfold to EUR 64.6 million (2020: EUR
11.1 million*)

– Dividend proposal of EUR 1.50 per share reflects positive business
performance

– Further highlights: New products fireworks consistently continued and
path to climate-neutral AMAG outlined

– Outlook for 2022: Demand for aluminium products continuing to rise,
according to CRU. Too early for earnings guidance due to uncertain market
trend

* includes correction according to IAS 8.41 (details are explained in
chapter G in the consolidated financial statements)

AMAG Austria Metall AG expanded shipment volumes in all its operating
divisions in the 2021 financial year and even slightly exceeded pre-crisis
levels from 2019. The positive market environment was thereby successfully
leveraged both in the primary aluminium business and in recycled cast
alloys and aluminium rolled products.

Gerald Mayer, CEO of AMAG comments: „With stable production output and
high productivity, we successfully met high demand from almost all
industrial sectors. We implemented product mix optimisations on a targeted
basis at our site in Ranshofen and successfully served existing customers.
Significant cost inflation, especially for energy, metal alloys and
logistics, negatively impacted earnings and margin trends from the second
half of 2021 onwards. Our Canadian subsidiary Alouette made a significant
contribution to the AMAG Group’s record results as the particularly
positive market environment was leveraged successfully.“

Revenue of EUR 1,259.4 million clearly reflects the significantly higher
aluminium price and premium levels as well as the volume growth in the
reporting year (2020: EUR 904.2 million). The average 3-month aluminium
price rose from 1,730 USD/t in the previous year to 2,488 USD/t in the
2021 financial year (+43.8 %). Shipment volumes recorded considerable
growth across all industrial sectors and totalled 442,300 tonnes in the
2021 financial year, compared with 404,800 tonnes in the previous year
(+9.3 %).

Earnings before interest, taxes, depreciation and amortisation (EBITDA)
achieved a significant increase above 70 % to reach EUR 186.2 million,
thereby resulting in a new high in AMAG’s history (2020: EUR 108.2
million). The growth in shipment volumes in all AMAG divisions and product
mix optimisations at the Ranshofen site are major drivers for this record.
A particularly favourable market environment in the primary aluminium area
also made a significant contribution to the AMAG Group’s positive
performance. Overall, the EBITDA margin recorded a clear improvement from
12.0 % in the previous year to 14.8 % in the year under review.

After depreciation and amortisation of EUR 84.4 million in the 2021
financial year (2020: EUR 83.5 million), a triple-digit operating profit
(EBIT) of EUR 101.8 million was achieved, compared with EUR 24.8 million
in the previous year. Net income after taxes rose approximately six-fold
year-on-year to reach EUR 64.6 million in the 2021 financial year (2020:
EUR 11.1 million).

Cash flow from operating activities amounted to EUR 45.6 million in the
year under review (2020: EUR 107.3 million). The high earnings
contribution had a positive impact on cash flow, while the significantly
higher aluminium price had an offsetting effect in relation to inventory
financing (working capital). A total of EUR 69.8 million was spent on
investments in the 2021 financial year, compared with EUR 62.2 million in
the previous year. Free cash flow amounted to EUR -24.2 million as a
consequence (2020: EUR 45.1 million).

The key balance sheet figures continue to reflect AMAG’s stable position.
Net financial debt stood at EUR 346.1 million as of December 31, 2021,
compared with EUR 314.3 million as of the end of the 2020 financial year.
Equity amounted to EUR 629.5 million at the end of the year under review
(December 31, 2020: EUR 602.7 million), and the equity ratio rose from
38.9 % as of December 31, 2020 to 39.5 % as of the 2021 year-end. The
gearing ratio at the end of the reporting year stood at 55.0 % (December
31, 2020: 52.2 %).

Proposed dividend:

The Management and Supervisory boards will propose a dividend of EUR 1.50
per share to the Shareholders‘ Annual General Meeting. This corresponds to
a dividend yield of around 4 % in relation to the year-end closing price
of the AMAG share of EUR 41.00. As in the previous year, the Annual
General Meeting will be held in virtual form on April 20, 2022. The
dividend payment date is April 27, 2022.

Outlook:

Positive economic forecasts for 2022 with an expected global growth of
+4.4 % and +3.9 % for the Eurozone are marked by various uncertainties
(e.g. supply chains inflation, geopolitical developments). The further
course of the COVID-19 pandemic, particularly in relation to virus
mutations, can exert both a rapid and significant influence on economic
growth.

Forecasts by the CRU (Commodity Research Unit) for demand for both primary
aluminium and aluminium products are promising. With a look to 2022,
cross-industry demand is expected to increase by 1.7 % and 9.7 %
respectively.

The continued gratifying order book position at the Ranshofen site
reflects high demand for aluminium products and leads to the anticipation
of a positive trend in shipment volumes. However, in some cases
considerable increases in key production costs will continue to impact
earnings and margin trends in the 2022 financial year. Shortages of
suitable skilled personnel and impaired supply chains remain challenging.

Gerald Mayer, CEO of AMAG: „We are confident that, after a record year in
2021, we will again achieve good results in the 2022 financial year,
despite significant cost increases. Risks include uncertain geopolitical
developments, a significant rise in inflation and negatively impacted
supply chains.“

In the primary aluminium business, earnings depend to a large extent on
aluminium and raw material prices, which can be highly volatile as
experience shows. Currency fluctuations, especially in terms of USD-CAD
and EUR-USD, can also have an impact on earnings development.

It is too early to issue earnings guidance in the form of an EBITDA range
due to the uncertainties outlined.

Annual Report 2021:

The 2021 annual report is now available for downloading from the investor
relations area of the AMAG website. It consists of the comprehensive
financial report including the non-financial statement as well as a
magazine summarising the most important information on the 2021 business
performance.

AMAG key figures:

EUR millions 2021 2020* Change
Shipments in tonnes 442,300 404,800 9.3 %
of which external shipments in tonnes 414,600 378,200 9.6 %
Revenue 1,259.4 904.2 39.3 %
EBITDA 186.2 108.2 72.0 %
EBIT 101.8 24.8 310.9 %
Net income after taxes 64.6 11.1 484.3 %
Cash flow from operating activities 45.6 107.3 -57.5 %
Cash flow from investing activities -69.8 -62.2 -12.2 %
Employees^1) 2,148 1,991 7.9 %

 

EUR millions December 31, 2021 December 31, 2020* Change
Equity 629.5 602.7 4.4 %
Equity ratio 39.5 % 38.9 % –
Gearing 55.0 % 52.2 % –

 

* A correction in accordance with IAS 8.41 results in an adjustment of the
previous year’s figures (for details, please refer to the financial
report, section G of the consolidated financial statements).

1) Average number of employees (full-time equivalents), including contract
workers and excluding apprentices. Includes the 20 % share of personnel
from the interest in the Alouette smelter as well as the personnel of 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
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 maintaining an exemplary net ecological footprint. At AMAG
components, based in Übersee am Chiemsee (Germany), ready-to-install metal
parts are also manufactured for the aircraft industry.
 

Investor contact Press contact
Christoph M. Gabriel Leopold Pöcksteiner
Head of Investor Relations Head of Corporate Communications
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) 7722-801-2205
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 based on all information
available to AMAG as per February 8, 2022. In the event that the
assumptions underlying these forecasts prove to be incorrect, targets be
missed, or risks materialise, actual results may depart from those
currently anticipated. We are not obligated to revise these forecasts in
the light of new information or future events.
This report was prepared and the data contained in it verified with the
greatest possible care. Nevertheless, misprints and rounding and
transmission errors cannot be entirely ruled out. 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.

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17.02.2022 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: 1281250

 
End of News EQS News Service

1281250  17.02.2022 

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