EQS-News: AMAG Austria Metall AG: Successful first half-year with significant cash flow growth
EQS-News: AMAG Austria Metall AG / Key word(s): Half Year Results
AMAG Austria Metall AG: Successful first half-year with significant cash
flow growth
27.07.2023 / 07:20 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Ranshofen, July 27, 2023
AMAG Austria Metall AG: Successful first half-year with significant cash
flow growth
• Broad product portfolio, flexible order processing and rapid delivery
capability ensured a successful first half of 2023. Demand
significantly more subdued in some cases since the second quarter of
2023
• Revenue of EUR 796.4 million following a record in the previous year
(H1/2022: EUR 904.3 million)
• EBITDA of EUR 117.8 million clearly reflects successful first
half-year (H1/2022: EUR 156.5 million)
• Net income after taxes again at an attractive level of
EUR 51.0 million (H1/2022: EUR 78.4 million)
• Significant growth in cash flow from operating activities to
EUR 68.0 million (H1/2022: EUR -84.1 million)
• Outlook for 2023: EBITDA between EUR 160 million and EUR 190 million
assuming no unexpected significant deterioration in the economic
situation and a continued stable aluminium price
AMAG Group generated very satisfactory earnings in the first half of 2023
in an increasingly subdued market environment. The basis for this was
formed by the company’s high level of flexibility in order processing and
its broad product portfolio. With EBITDA of EUR 117.8 million, the Group
achieved its second highest level of half-year earnings ever.
Gerald Mayer, CEO of AMAG Austria Metall AG, comments: “All our operating
companies exploited the opportunities in the first half of 2023 optimally.
In Canada, we continued to benefit from stable production levels. From our
fully integrated site in Ranshofen, shipment volumes to the aircraft,
automotive and packaging industries recorded further growth. The ongoing
economic downturn is evident in the reduction in new order intake,
especially in the areas of industrial applications, sports and
architecture.”
AMAG Group generated revenue of EUR 796.4 million in the first half of
2023 (H1/2022: EUR 904.3 million). This was due particularly to the 23.6 %
lower aluminum price and lower shipment volumes of 221,200 tonnes
(H1/2022: 225,100 tonnes).
At EUR 117.8 million, the second highest half-year earnings in AMAG’s
history were achieved, following record EBITDA (earnings before interest,
taxes, depreciation and amortisation) in the previous year (H1/2022:
EUR 156.5 million), despite lower shipment volumes. The Metal Division
benefited from continued stable production in Canada. However, the
significant drop in the aluminium price and a higher alumina price level
in relation to the aluminium price had a negative effect on earnings. A
high degree of flexibility enabled the Casting and Rolling divisions to
leverage the challenging market environment to optimum effect.
Depreciation and amortisation amounted to EUR -42.4 million in the first
six months of the reporting year (H1/2022: EUR -43.7 million). The
operating profit (EBIT) of EUR 75.4 million reflects an overall successful
first half of 2023 (H1/2022: EUR 112.8 million).
Net income after taxes amounted to EUR 51.0 million in the reporting
period, compared with EUR 78.4 million in the first half of 2022.
Cash flow from operating activities increased significantly to
EUR 68.0 million (H1/2022: EUR -84.1 million). In particular, the high
operating result (EBITDA) in the first half of 2023 is responsible for
this. In the previous year, the main negative factors were the higher
aluminium price and the accumulation of reserve stocks. Cash flow from
investing activities amounted to EUR -50.6 million in the first six months
of the reporting year, as budgeted (H1/2022: EUR -29.7 million). This
results in free cash flow of EUR 17.4 million, compared to
EUR -113.9 million in the previous year.
Net financial debt stood at EUR 432.6 million as of June 30, 2023,
compared with EUR 393.3 million as of the end of the 2022 financial year.
AMAG Group’s equity grew to EUR 742.5 million as of June 30, 2023
(December 31, 2022: EUR 710.3 million). The equity ratio stood at 41.7 %
as of the end of June 2023 (December 31, 2022: 39.6 %).
Outlook for 2023:
Following a record half-year result in the previous year, AMAG Group
generated its second highest half-year earnings to date within a generally
worsening market environment. In this context, demand from various
industries has been increasingly subdued, especially since the second
quarter of 2023. According to CRU forecasts for 2023, global demand for
primary aluminum and aluminum rolled products will continue to expand,
although China will be the main growth driver. For Europe, the CRU expects
demand to diminish by -4.8 % for primary aluminum and by -2.0 % for
aluminum rolled products.[1][1]
The further course of business in 2023 will depend especially on general
economic and aluminium price trends. Monetary policy measures and the
associated inflation trend are also playing a role. Uncertainties arising
from geopolitical conflicts (especially the Ukraine conflict and trade
disputes between China and the USA) can rapidly lead to changes in the
market environment. Despite the significant easing on markets, supplies of
energy and raw materials remain a significant factor of uncertainty.
From today’s perspective and based on current price assumptions, the AMAG
Management Board expects the Metal Division’s earnings to remain stable.
Especially in the Rolling Division – based on current market estimates –
business is expected to be significantly below the level of the first half
of 2023.
Assuming that there is no unexpected significant deterioration in the
economic situation, and that energy supplies and aluminium prices remain
stable, the AMAG Management Board currently anticipates EBITDA in a range
between EUR 160 million and EUR 190 million for the 2023 financial year.
AMAG – key figures:
EUR million Q2/2023 Q2/2022 Change H1/2023 H1/2022 Change
Shipments in tonnes 110,700 120,500 -8.1 % 221,200 225,100 -1.7 %
of which external
shipments in tonnes 102,600 113,600 -9.7 % 205,400 211,600 -2.9 %
Revenue 391.6 505.4 -22.5 % 796.4 904.3 -11.9 %
EBITDA 57.0 88.5 -35.6 % 117.8 156.5 -24.8 %
EBIT 35.9 66.5 -46.0 % 75.4 112.8 -33.2 %
Net income after taxes 24.2 45.9 -47.3 % 51.0 78.4 -34.9 %
Cash flow from operating
activities 32.5 46.1 -29.6 % 68.0 -84.1 +180.8 %
Cash flow from investing
activities -27.1 -14.5 -87.1 % -50.6 -29.7 -70.3 %
Employees^1) 2,256 2,214 +1.9 % 2,238 2,207 +1.4 %
EUR million June 30, 2023 December 31, 2022 Change
Equity 742.5 710.3 +4.5 %
Equity ratio 41.7 % 39.6 %
Gearing 58.3 % 55.4 %
[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 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 impact. 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 on the basis of all
information available to AMAG as of July 14, 2023. 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.
[2]^[1] Commodity Research Unit, Aluminium Market Outlook, June 2023, and
Aluminium Rolled Products Market Outlook, May 2023
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27.07.2023 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: 1687279
End of News EQS News Service
1687279 27.07.2023 CET/CEST
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