AMAG Austria reports record increase in shipment volumes in Q1

AMAG, a leading supplier of high-quality aluminium cast and flat rolled products in Austria for a number of industries like aerospace, automotive, sports equipment, lighting, mechanical engineering, construction and packaging has reported the results of H1 2016.

Highlights:

  • Record increase in shipment volumes to 206,300 tonnes
  • The total EBITDA recorded a rise of 7 %
  • Net income after taxes increased by 21 %.
  • FY 2016 earnings forecast raised
  • New multi-year contract signed with Airbus
  • Expansion project for "AMAG 2020" on schedule and on budget

AMAG continued on its stable growth in H1 2016 and reported a record shipment volume of 206,300 tonnes. Plant expansion and marked volume growth in the rolled products area have contributed towards this growth.

Total revenue for H12016 was EUR 461.4 million which recorded a drop of 2 % YoY, mostly as a result of lower aluminium prices. However, total EBITDA recorded a rise of 7 %, from EUR 68.9 million to EUR 73.4 million. The operating profit (EBIT) for H1 2016 was EUR 39.3 million,14 % more than the previous year's level of EUR 34.3 million. Net income after taxes also increased from EUR 21.5 million to EUR 25.9 million recording a growth of 21 %.

Results were positive in comparison to Q1.EBITDA was up by 19 % in Q2 2016, from EUR 34.3 million to EUR 40.7 million. Net income after taxes almost doubled to EUR 18.2 million.

Most of plant expansion during 1st half was financed from company's own resources which produced expected results in production and income.

Commenting on the results Helmut Wieser, CEO of AMAG said, "We are increasingly benefiting from our plant expansion and from the significantly higher output of our new hot rolling mill, which is enabling us to grow together with our international customers. We have just signed the largest contract ever concluded between AMAG and Airbus. Our combination of innovative products, high productivity and efficiency are essential preconditions for our competitiveness, and with it the positive trend in our profitability."

"The expansion of the Ranshofen site continues to progress rapidly. This expansion project, which will lift capacity for aluminium rolled products to more than 300,000 tonnes, is running on budget and on schedule. Commissioning will start in around a year's time," he added.

AMAG reported a positive outlook for primary aluminium and aluminium rolled products in 2016. Around 4% growth forecast by Market research institute CRU supported that. They raised the EBITDA forecast for the 2016 financial year to a range between EUR 120 million and EUR 130 million taking into account the positive earnings trend during the first six months, planned maintenance works during the second half of the year, and current market conditions.