AMAG announces record breaking earnings in Q3 2021 with EBIDTA of 53 million

In the first nine months of 2021, the AMAG group set new revenue and earnings records. The key reasons for this were consistent production results, increased export quantities, and a competitive aluminium pricing. AMAG is a major Austrian premium provider of high-quality aluminium cast and flat rolled products for a wide range of sectors, including aerospace, automotive, sporting goods, lighting, mechanical engineering, construction, and packaging.

“After a difficult year 2020, we have been able to cope with the challenges in connection with the rapid recovery since the beginning of the year and have achieved a very positive result. Aluminium production in Canada contributes significantly to that. At our Ranshofen site, we successfully met high demand from various industries and at the same time implemented planned plant modernisations on schedule. The most important bottleneck is currently the availability of suitable specialist staff for production. At present we are looking for around 100 employees,” said, Gerald Mayer, CEO of AMAG Austria Metall AG.

The higher aluminium price and premium level, as well as the increased shipment volumes, have boosted revenue. In the first three quarters of 2021, the average three-month aluminium price was US$2,393 per tonne, up from US$1,663 per tonne the previous year.Following the positive half-year performance, (Q1-Q3/2020: EUR 79.8 million), profits before interest, taxes, depreciation, and amortisation (EBITDA) in 9 months this year reached EUR 146.5 million, a new high in AMAG's history.

As a result, the 2019 pre-crisis performance (EUR 1,430 million) has already been surpassed. The Canadian smelter's increased income and full capacity utilisation had a crucial role in this. A surge in demand for recycled cast alloys and aluminium rolled goods was effectively exploited, resulting in a significant increase in shipment quantities. The operational result (EBIT) of EUR 83.9 million in the period under review was considerably above the previous year's level (Q1-Q3/2020: EUR 17.7 million) after depreciation and amortisation of EUR 62.7 million (Q1-Q3/2020: EUR 62.0 million).

As of the conclusion of the first three quarters of 2021, net income after taxes has increased by more than fivefold year on year to EUR 57.0 million (Q1-Q3/2020: EUR 11.1 million).

In the reporting period under review, cash flow from operational operations totalled EUR 68.1 million (Q1-Q3/2020: EUR 102.3 million). Higher wages were beneficial, but the considerable increase in the price of aluminium was detrimental. In the first nine months of 2021, investments totalled EUR 43.7 million, up from EUR 39.7 million the previous year. As a result, the AMAG Group reports EUR 24.4 million in free cash flow (H1/2020: EUR 62.6 million).

As of September 30, 2021, net financial debt was constant at EUR 300.0 million (December 31, 2020: EUR 314.3 million). The AMAG Group's equity, at EUR 599.4 million, was likewise at a healthy level as of the current quarterly reporting date (December 31, 2020: EUR 602.7 million). The current equity ratio is 38.2 percent, compared to 38.9 percent as of December 31, 2020.

Total sales increased significantly in Q3/2021, reaching 111,700 tonnes (Q3/2020: 100,700 tonnes). The favourable revenue trend was aided by a 52 percent higher average aluminium price of US$2,654 per tonne, as well as increased premium income. Overall, the AMAG Group's sales increased by 57 percent from the previous quarter to EUR 328.8 million (Q3/2020: EUR 209.3 million).

The Metal Division's strong performance, as well as the good demand trend for recycled cast alloys and aluminium rolled products, resulted in EBITDA of EUR 53.0 million (Q3/2020: EUR 20.4 million). In Q3/2021, strong aluminium prices and premium levels, together with still low primary material costs at the Canadian location, had a beneficial impact on EBITDA. Input cost increases, particularly in the casting and rolling divisions, are having an increasingly negative influence on profitability.

The AMAG Group reported considerable rise in EBIT to EUR 32.0 million in the past quarter, compared to EUR 0.1 million in the third quarter of the previous year, after depreciation and amortisation of EUR 21.0 million (Q3/2020: EUR 20.3 million). The current reporting quarter's net income after taxes represents a highly favourable Q3/2021 with EUR 22.1 million (Q3/2020: EUR -1.3 million). Aluminium is in great demand across all industries in the present market scenario. According to the Commodity Research Unit (CRU), rising demand for aluminium is likely to continue into 2021.

The Metal Division is now profiting from a historically high aluminium price, whose future development is fraught with uncertainty. The AMAG Group's production costs reflect price increases, some of which are significant, particularly in the areas of energy, logistics, and important core materials. AMAG Group's business development is increasingly influenced by labour availability, in addition to growing expenses.

The AMAG Management Board expects EBITDA in the range of EUR 175 to EUR 195 million for the whole fiscal year 2021, based on an enhanced projection in the Metal Division as a result of the higher aluminium pricing.