AMAG reports 9% drop in EBITDA for the first three quarters of 2019 on lower aluminium price; higher shipment offsets th

AMAG Austria Metall AG has reported earnings results for Q3 and the first three quarters of 2019. After the recently completed site expansions, total shipments in the first three quarters increased by 7% YoY to 336,500 tonnes. Total revenue of EUR 821.5 million was at the same level as the first three quarters of 2018 and partially offset the negatives impact of lower aluminium prices. LME price averaged at US$1,829/t, down 15% YoY.

EBITDA for Jan-Sept period dropped 9% to EUR 109.2 million from EUR 120.1 million in the same period of 2018. This drop was primarily driven by market-led decline in aluminium prices. Lower raw material costs had a positive effect on earnings. EBIT dropped to EUR 47.9 million from EUR 60.0 million in the previous year. Net income after taxes reduced from EUR 43.4 million to EUR 30.0 million.

Metal Division EBITDA dropped to EUR 18.0 million in 2019 from EUR 23.7 million in the previous year. Favourable raw material costs and the lifting of US tariffs on aluminium imported from Canada had a positive impact on the results and offset lower aluminium prices considerably.

The Casting Division EBITDA increased to EUR 6.2 million from EUR 5.6 million in the first three quarters of 2018. The Rolling Division benefited further from volume growth. Shipments rose 6% to 178,100 tonnes, driven by automotive and aircraft sectors.  EBITDA of EUR 89.9 million was up 11 % year-on-year.

Cash flow from operating activities quadrupled year-on-year from EUR 26.5 million in the first three quarters to EUR 108.3 million.

As for Q3 2019 results are concerned, shipments of 111,000 tonnes were at the same level as Q3 2018. Revenue in Q3 2019 declined by 7 % to EUR 266.9 million due to lower aluminium prices. By contrast, EBITDA was up by 10 %, from EUR 33.9 million to EUR 37.2 million driven by a drop in raw material costs and the lifting of US tariffs on aluminium imported from Canada. The AMAG Group's EBIT for the past quarter increased 19% YoY to EUR 16.7 million. Net income after taxes rose by 7.0% to EUR 11.1 million. 

Markets are currently volatile because of trade disputes and uncertainties regarding global economic growth, especially in the automotive sector. Global primary aluminium demand is expected to remain flat in 2019, but aluminium rolled products demand is expected to increase by around 3%. Alumina and aluminium price trends will determine the Q4 and whole year results. Lower raw material costs and lifting of tariff on aluminium will benefit AMAG’s metal division.

EBITDA for the AMAG Group for the 2019 financial year is expected in a range between EUR 125 million and EUR 140 million.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.