AMAG reports 6% revenue growth in FY 2018 driven by record rolling shipment and higher aluminium prices

A press release from the AMAG Austria Metall AG says that the Group's total shipments in 2018 rose to a record of 424,600 tonnes in comparison to 421,700 tonnes in 2017 driven by rising demand for aluminium products combined and ramp-up of the new plants in Ranshofen.

Helmut Wieser, CEO of AMAG: "We implemented our two site expansion projects within budget and on schedule, and we are also making good progress in the demanding ramp-up of our new facilities. In 2018, we achieved important qualifications in the packaging, aircraft and automotive industries. This created the basis for further growth in the coming years."

Revenue was up by around 6 % to EUR 1,101.6 million compared to EUR 1,036.2 million in 2017 driven by higher shipment volumes and the higher average aluminium price.

The introduction of US import tariffs on aluminium had a negative impact on earnings in millions of euros for shipments from Austria to the USA. The production cut in Alunorte as well as US sanctions on Rusal led to high price fluctuations for alumina and aluminium and increased cost for AMAG.

EBITDA for 2018 was down by about 14% to EUR 141.0 million from EUR 164.5 million in 2017 due to higher raw material costs, US import tariffs on aluminium, higher ramp-up costs and unfavourable valuation effects as. The Group’s net income after taxes dropped to EUR 44.5 million in the 2018 from EUR 63.2 million in 2017.

AMAG reports a solid balance sheet and equity rose from EUR 607.9 million to EUR 620.9 million. For the 2018 financial year, the Management Board proposed to pay a YoY unchanged dividend of EUR 1.20 per share.

AMAG has a bullish outlook for next five years as CRU projected attractive global demand growth in 2019 and in the next five years for both primary aluminium products and aluminium rolled products. Global demand for aluminium rolled products is expected to increase by around 4 % and transport sector demand is expected to rise around 7%.

The Group sees a good starting position for the coming years due to promising market growth, solid balance sheet and the growth investments.

Gerald Mayer, the ensuing Chief Executive Officer of AMAG from March 1 said: "We will consistently pursue our growth strategy. In the 2019 financial year, AMAG will continue to benefit from further volume growth as part of the ramp-up. This brings us a further significant step closer to our shipment target of more than 300,000 tonnes of aluminium rolled products."

The Group has not made any earning forecast for 2019 due to high price fluctuations of raw materials.