EQS-News: AMAG Austria Metall AG: Solid trend in the first three quarters of 2023 due to broad positioning
EQS-News: AMAG Austria Metall AG / Key word(s): 9 Month figures/Quarter
Results
AMAG Austria Metall AG: Solid trend in the first three quarters of 2023
due to broad positioning
25.10.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Ranshofen, October 25, 2023
AMAG Austria Metall AG: Solid trend in the first three quarters of 2023
due to broad positioning
• Product and sector diversity as well as the interest held in the
smelter in Canada secure solid earnings trend within a challenging
environment
• Continued positive trend in demand from the aircraft sector; stable
development in the automotive industry; sports and architectural
products as well as industrial applications still at a low level
• Revenue of EUR 1,142.8 million significantly exceeds EUR 1 billion
level (Q1-Q3/2022: EUR 1,353.9 million)
• EBITDA at EUR 166.0 million due to overall good performance in the
operating divisions (Q1-Q3/2022: EUR 217.4 million)
• Net income after taxes at a solid level of EUR 69.7 million
(Q1-Q3/2022: EUR 106.7 million)
• Significant growth in cash flow from operating activities to
EUR 157.0 million (Q1-Q3/2022: EUR 40.5 million)
• Guidance for FY 2023: EBITDA range between EUR 175 million and
EUR 195 million
Due to its broad positioning, AMAG Group recorded solid revenue and
earnings trends in the first three quarters of 2023. With demand from the
aircraft and automotive sectors remaining positive, significant reductions
in industrial applications, sports and architectural products were
flexibly offset. The satisfactory profitability of the smelter in Canada
also exerted a compensatory effect.
Gerald Mayer, CEO of AMAG Austria Metall AG, comments: “With an operating
result significantly above the pre-crisis level from 2019, we look back on
a satisfactory earnings development overall. Nevertheless, the current
recession is not sparing AMAG. The significant decline in demand,
particularly for industrial applications, could only be partially
compensated by the AMAG Group’s broad positioning, its interest in Canada
and its high flexibility. Order intake from the aircraft sector continues
to be positive.“
AMAG Group’s revenues clearly exceeded the EUR 1 billion level in the
first three quarters of 2023 at EUR 1,142.8 million (Q1-Q3/2022:
EUR 1,353.9 million). Compared with the previous year, the lower aluminium
price and especially the reduction in shipments of aluminium rolled
products had a noticeable impact. AMAG Group’s total shipments amounted to
327,700 tonnes (Q1-Q3/2022: 341,500 tonnes).
Earnings before interest, tax, depreciation and amortisation (EBITDA)
amounted to EUR 166.0 million in the period under review, compared with
EUR 217.4 million in the prior-year period. The Metal Division continued
to benefit from stable production levels at the interest held in Canada’s
Alouette smelter, given lower aluminium prices overall. In the Casting
Division, the continued stable market environment in the automotive
industry was leveraged to best effect. In the Rolling Division, the
market-related decrease in demand from the mentioned industries was
optimally offset thanks to the high level of sector and product diversity.
Depreciation and amortisation decreased to EUR 63.8 million in the first
three quarters (Q1-Q3/2022: EUR 65.7 million). At EUR 102.2 million,
operating profit (EBIT) once again exceeded the EUR 100 million level
(Q1-Q3/2022: EUR 151.6 million). Net income after taxes for the first nine
months amounted to EUR 69.7 million (Q1-Q3/2022: EUR 106.7 million).
The positive trend in cash flow from operating activities continued
successfully in the third quarter of 2023. After nine months, operating
cash flow of EUR 157.0 million was generated (Q1-Q3/2022:
EUR 40.5 million). This was particularly due to the high level of
operating profit as well as working capital reduction. Capital expenditure
amounted to a total of EUR 75.4 million (Q1-Q3/2022: EUR 48.8 million).
Accordingly, free cash flow improved significantly to EUR 81.6 million in
the period under review (Q1-Q3/2022: EUR -8.3 million).
Net financial debt stood at EUR 369.3 million as of September 30, 2023,
compared with EUR 393.3 million as of the end of the 2022 financial year.
Equity grew from EUR 710.3 million at the end of 2022 to EUR 749.4 million
as of the end of the third quarter. The equity ratio rose to 42.7 %
(December 31, 2022: 39.6 %).
Earnings trends in the third quarter of 2023
Total shipments in the third quarter of 2023 amounted to 106,500 tonnes
(Q3/2022: 116,400 tonnes). The average aluminium price decreased
quarter-on-quarter from 2,358 USD/tonne to 2,200 USD/tonne. Overall, this
reduced AMAG Group revenue to EUR 346.4 million (Q3/2022:
EUR 449.6 million).
EBITDA again reached a solid level of EUR 48.2 million (Q3/2022:
EUR 60.8 million). Earnings in the Metal Division remained stable. The
Casting Division maintained shipment volumes at a high level compared to
the same quarter of the previous year. In the Rolling Division, market
turbulence was optimally countered by its broad portfolio.
Including depreciation and amortisation of EUR 21.4 million (Q3/2022:
EUR 22.0 million), EBIT of EUR 26.8 million was generated in the third
quarter of 2023 (Q3/2022: EUR 38.8 million). Net income after taxes
amounted to EUR 18.7 million (Q3/2022: EUR 28.3 million). Cash flow from
operating activities was again very positive in the third quarter of 2023
at EUR 89.0 million (Q3/2022: EUR 124.6 million).
Outlook for 2023:
Overall, current forecasts[1][1] of demand trends confirm growth in demand
for aluminium products in the medium and long term. In the short term
(2023), demand for aluminium rolled products will diminish across all
industries, with the exception of the transport sector. AMAG Group’s
diverse setup exerts a particularly balancing and stabilising effect
within this market environment.
The Metal Division has benefited for many years from the efficient smelter
operations in Canada. Depending on the further trend in aluminium and raw
materials prices, earnings are also anticipated to remain stable in the
fourth quarter of 2023. The Casting Division is also expected to achieve a
high level of capacity utilisation and consequently a solid earnings
performance during the remainder of 2023. The Rolling Division can
successfully participate in rising build rates in the aircraft industry
and stable demand for automotive products to date. The subdued market
environment is having a particularly strong impact on industrial
applications and on the sports and architecture sectors.
Geopolitical conflicts as well as interest rate and inflation trends, in
particular, are continuing to represent major uncertainties leading to
rapid changes in the market environment.
From today’s perspective and on the basis of current price assumptions,
the AMAG Management Board expects EBITDA of between EUR 175 million and
EUR 195 million for the 2023 financial year.
AMAG – key figures:
Q3/2023 Q3/2022 Change Q1-Q3/2023 Q1-Q3/2022 Change
Shipments in tonnes 106,500 116,400 -8.5 % 327,700 341,500 -4.0 %
of which external
shipments in tonnes 98,300 107,600 -8.6 % 303,700 319,200 -4.9 %
Revenue in EUR
million 346.4 449.6 -23.0 % 1,142.8 1,353.9 -15.6 %
EBITDA in EUR
million 48.2 60.8 -20.7 % 166.0 217.4 -23.6 %
EBIT in EUR million 26.8 38.8 -31.0 % 102.2 151.6 -32.6 %
Net income after
taxes in EUR
million 18.7 28.3 -34.0 % 69.7 106.7 -34.7 %
Cash flow from
operating
activities in EUR
million 89.0 124.6 -28.6 % 157.0 40.5 +287.6 %
Cash flow from
investing
activities in EUR
million -24.8 -19.1 -29.9 % -75.4 -48.8 -54.5 %
Employees in FTE^1) 2,272 2,240 +1.4 % 2,249 2,218 +1.4 %
September 30, 2023 December 31, 2022 Change
Equity in EUR million 749.4 710.3 +5.5 %
Equity ratio in % 42.7 % 39.6 %
Gearing in % 49.3 % 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 October 18, 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, July 2023, and
Aluminium Rolled Products Market Outlook, August 2023
══════════════════════════════════════════════════════════════════════════
25.10.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
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: 1755501
End of News EQS News Service
1755501 25.10.2023 CET/CEST
References
Visible links
1. file:///appl/crs1/tmp/HTML-FormatExternal-fzBfEG.html#_ftn1
2. file:///appl/crs1/tmp/HTML-FormatExternal-fzBfEG.html#_ftnref1
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender