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30 APRIL 2019 AL CIRCLE

AMAG Austria reports drop in earning in Q1 2019 on falling aluminium price; higher rolling volume boosts revenue

EDITED BY : BEETHIKA BISWAS 2MINS READ

AMAG Austria Metall AG has reported results for Q1 2019. The AMAG Group's revenue increased by 4 % YoY from EUR 263.2 million to EUR 274.4 million, driven by higher volume in the Rolling Division.

Shipment volumes were up by 10 % to 111,600 tonnes in Q1 2019 compared to Q1 2018. Higher shipment volume was driven by positive ramp-up of the new plants in the Rolling Division and the new melting furnace in the Casting Division.

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EBITDA for Q1 amounted to EUR 33.0 million in Q1 2019, compared with EUR 38.9 million in Q1 2018. Falling aluminium prices in the first quarter coupled with higher raw material costs had a negative impact on the earnings in the Metal Division which dropped from EUR 10.6 million to EUR 0.1 million. The higher shipments volumes partially offset this effect.

EBITDA in the Casting Division climbed from EUR 1.1 million to EUR 1.9 million primarily attributed to significant growth in shipments. The ramp-up of the new plants in the Rolling Division continued successfully. Shipments increased 9% from 54,400 to 59,200 tonnes and lifted the EBITDA from EUR 24.3 million to EUR 32.1 million.  EBITDA in the Service Division dropped from EUR 3.0 million to EUR -1.1 million.

EBIT for the AMAG Group stood at EUR 12.8 million compared with EUR 18.6 million in Q1 2018. Net income after taxes dropped to EUR 7.6 million in Q1 2019 from EUR 12.9 million in Q1 2018.

AMAG Group has a positive market outlook for 2019 based on CRU’s global demand growth of 2% for primary aluminium in 2019. Global demand for aluminium rolled products is expected to grow by around 3 % in 2019. The company forecasts high volatilities for aluminium and alumina prices in 2019. The group expects their EBITDA for 2019 to range between EUR 125 million and EUR 155 million in 2019.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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