EQS-News: AMAG Austria Metall AG: Road to success continued in Q3 2022
EQS-News: AMAG Austria Metall AG / Key word(s): Quarter Results
AMAG Austria Metall AG: Road to success continued in Q3 2022
27.10.2022 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Ranshofen, October 27, 2022
AMAG Austria Metall AG: Road to success continued in Q3 2022
• Significant revenue growth of 47 % to EUR 1,353.9 million
(Q1-Q3/2021: EUR 923.8 million)
• EBITDA grows by 48 % to reach an all-time high of EUR 217.4 million
(Q1-Q3/2021: EUR 146.5 million)
• Significant growth in net income after taxes of 87 % to reach
EUR 106.7 million (Q1-Q3/2021: EUR 57.0 million)
• Optimised product mix and very good use of existing plant and
personnel capacities as well as stable production play a crucial role
• Further business performance is being increasingly affected by
partially declining demand and a general slowdown in the market as
well as by high energy prices
• Outlook for 2022: EBITDA between EUR 230 million and EUR 250 million
based on current estimates for trends in shipment volumes and prices,
and assuming stable energy supplies
• Continued solid growth expectation for aluminium products in the
medium and long term*
[*See CRU Aluminium Market Outlook, October 2022]
AMAG Group achieved further year-on-year growth in revenue and earnings in
the first three quarters of the year. This was the first time in the
company’s history that an operating result (EBITDA) of over
EUR 200 million was generated. Thanks to sustained high productivity,
continuous product mix optimisation as well as the good use of existing
capacities, AMAG has successfully leveraged the predominantly positive
market environment. Tailwinds also came from the interest that AMAG holds
in the Canadian smelter Alouette, which benefited from attractive
aluminium and raw material prices accompanied by solid production levels.
Gerald Mayer, CEO of AMAG Austria Metall AG, comments: “Despite numerous
challenges, we have achieved the best operating result in the company’s
history. With our innovative and sustainable products as well as a clear
focus on sustainable production, we made the best possible use of the
positive market environment. However, the course of business going forward
is characterised by uncertainties. We will continue to make the best
possible use of our broad positioning and respond flexibly to changes in
demand.”
AMAG Group revenue posted considerable growth of 46.6 % to
EUR 1,353.9 million in the first three quarters of 2022 (Q1-Q3/2021:
EUR 923.8 million), mainly reflecting the higher aluminium price level,
price adjustments due to increased costs, and optimisation of the product
mix. The significantly weaker EUR against the USD also exerted a
revenue-enhancing effect. At 341,500 tonnes, total shipments were slightly
above the previous year’s level (Q1-Q3/2021: 337,800 tonnes).
Earnings before interest, tax, depreciation and amortization (EBITDA) grew
significantly by 48.3 % to reach EUR 217.4 million (Q1-Q3/2021:
EUR 146.5 million). With production levels remaining solid, the Metal
Division benefited from the attractive average aluminium price and
relatively favourable alumina costs. The Casting and Rolling divisions
were characterised by high productivity as well es by an optimised use of
existing capacities. The successful implementation of product mix
optimisations and price adjustments to reflect higher costs for primary
materials and energy also exerted a positive effect.
Taking into account depreciation and amortization of EUR 65.7 million
(Q1-Q3/2021: EUR 62.7 million), the operating result (EBIT) also increased
considerably to EUR 151.6 million in the reporting period (Q1-Q3/2021:
EUR 83.9 million).
Net income after taxes almost doubled year-on-year to EUR 106.7 million in
the first nine months of the year
(Q1-Q3/2021: EUR 57.0 million).
As expected, cash flow from operating activities at EUR 124.6 million
recorded a very positive trend in the third quarter of 2022. Overall, the
cash flow from operating activities after nine months amounted to
EUR 40.5 million (Q1-Q3/2021: EUR 68.1 million). The high level of
earnings has a positive impact, while higher raw material prices and
inventories, in particular, increase capital employed and thereby exert
the opposite effect.
A total of EUR 48.8 million was spent on investments in the first nine
months of this year (Q1-Q3/2021: EUR 43.7 million). Accordingly, free cash
flow amounted to EUR -8.3 million in the period under review (Q1-Q3/2021:
EUR 24.4 million).
Net financial debt stood at EUR 395.8 million as of September 30, 2022,
compared with EUR 346.1 million as of the end of the 2021 financial year.
Equity grew from EUR 629.5 million at the end of 2021 to EUR 719.4 million
as of the current quarterly reporting date. At 38.3 %, the equity ratio
remained at a stable level, compared to the end of the year 2021 (December
31, 2021: 39.5 %).
Earnings trends in the third quarter of 2022
Total shipments increased significantly to 116,400 tonnes in the third
quarter of 2022 (Q3/2021: 111,700 tonnes). The average aluminium price
decreased quarter-on-quarter from 2,654 USD/tonne to 2,358 USD /tonne. A
positive change arose in premium income for primary aluminium deliveries.
At the AMAG site in Ranshofen, especially price adjustments to reflect
higher costs had a positive impact on AMAG Group revenue. Overall, the
quarter under review thereby recorded an increase of 36.8 % to
EUR 449.6 million (Q3/2021: EUR 328.8 million).
EBITDA increased significantly from EUR 53.0 million in the previous year
to EUR 60.8 million in the period under review, which especially reflects
solid production levels at the Canadian subsidiary Alouette as well as
high productivity and successful optimisations in the product mix. To
date, increases in raw material and energy costs have been largely offset
by price adjustments.
Taking into account depreciation and amortization of EUR 22.0 million
(Q3/2021: EUR 21.0 million), AMAG Group also reported significant growth
in EBIT to EUR 38.8 million in the past quarter (Q3/2021:
EUR 32.0 million). At EUR 28.3 million, net income after taxes in the
quarter under review reflects the positive performance during the quarter
(Q3/2021: EUR 22.1 million). As expected, a particularly high level of
cash flow from operating activities of EUR 124.6 million was generated in
the third quarter of 2022.
Outlook for 2022:
To date, the financial year has been characterised predominantly by a
positive market environment. However, the economic environment
increasingly slowed during the course of the third quarter of 2022, mainly
reflecting uncertainties in connection with the Ukraine war and
considerable cost inflation, primarily due to rising energy prices.
Moreover, uncertainty surrounding the continuity of energy supplies
remains.
Although existing energy price hedges and the broad product portfolio
cushion the related impact, AMAG Group expects an increasing effect on
earnings due to rising costs and declining market expectations in general.
This development is also partly reflected in the new incoming orders from
individual customer industries. According to the Commodity Research Unit,
general growth expectations for aluminium products remain solid in the
medium and long term.*
Based on current estimates for trends in shipment volumes and prices, and
assuming stable energy supplies, the AMAG Management Board anticipates
EBITDA between EUR 230 million and EUR 250 million for the full 2022
financial year.
[*See CRU Aluminium Market Outlook, October 2022]
AMAG key figures:
EUR million Q3/2022 Q3/2021 Change Q1-Q3/2022 Q1-Q3/2021 Change
Shipments in tonnes 116,400 111,700 +4.3 % 341,500 337,800 +1.1 %
of which external
shipments in tonnes 107,600 103,100 +4.4 % 319,200 317,600 +0.5 %
Revenue 449.6 328.8 +36.8 % 1,353.9 923.8 +46.6 %
EBITDA 60.8 53.0 +14.8 % 217.4 146.5 +48.3 %
EBIT 38.8 32.0 21.5 % 151.6 83.9 +80.8 %
Net income after
taxes 28.3 22.1 28.1 % 106.7 57.0 +87.0 %
Cash flow from
operating
activities 124.6 18.0 +594.0 % 40.5 68.1 -40.6 %
Cash flow from
investing
activities -19.1 -17.9 -6.6 % -48.8 -43.7 -11.7 %
Employees^1) 2,240 2,175 +3.0 % 2,218 2,143 +3.5 %
EUR million September 30, 2022 December 31, 2021 Change
Equity 719.4 629.5 14.3 %
Equity ratio 38.3 % 39.5 %
Gearing 55.0 % 55.0 %
[1) Average number of employees (full-time equivalents), including
contract workers and excluding apprentices. Includes personnel from the
Alouette smelter (20 %) and of AMAG components.]
About 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 of October 20, 2022. 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.
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27.10.2022 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: 1470981
End of News EQS News Service
1470981 27.10.2022 CET/CEST
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