
AMAG Austria Metall AG, the leading Austrian premium supplier of high-quality aluminium cast and flat rolled products, posted an update on their performance during the first three quarters. The company continued to ramp up new plants and facilities in its Rolling Division. This volume growth in the Rolling Division largely offset drop in shipments in the Metal and Casting divisions. The AMAG Group's total shipments dropped 1% to 315,700 tonnes in the first three quarters of 2018 compared with the same period of 2017.

Commenting on the results, Helmut Wieser, CEO of AMAG said, "We have achieved further success in the challenging ramp-up of our new production plant. While we registered only slight growth in shipment volumes in the Rolling Division in the first half of 2018, the ramp-up has been increasingly gathering momentum. We are reporting 7 % shipments growth in the third quarter of 2018."
AMAG's consolidated revenue grew 4 % to reach EUR 825.0 million compared with YTD 2017, driven by higher aluminium price. Earnings were impacted by higher capital costs in its Rolling Division and rise in raw material costs, especially alumina prices in the second quarter. It was offset by the higher aluminium price level and a good performance by the Casting Division. Higher shipment volumes in the Rolling Division offset start-up costs for the new production plant. The impact from US import tariffs was largely compensated by higher sales revenue.
AMAG Group generated EBITDA of EUR 120.1 million from Jan – Sept 2018, down 7 % from the same period of 2017. EBIT in the review period dropped to EUR 60.0 million from EUR 72.0 million in the same period of 2017. Net income after taxes dropped to EUR 43.4 million from EUR 48.6 million in 2017.
Cash flow from operating activities stood at EUR 26.5 million compared to EUR 66.8 million in 2017.
The company has a favourable outlook for the full year 2018 on rising demand for aluminium and its alloys. CRU anticipates annual growth of around 4 % in global demand for primary aluminium and aluminium rolled products in 2018 and afterwards. The company expects the market volatility to continue in the rest of 2018.
Higher prices for alumina would put pressure on the full year results of the AMAG Group in 2018. The higher aluminium price, good performance by the Casting Division and the expected volume growth in the Rolling Division will compensate to certain extent. The company sticks to its EBITDA guidance at the lower end of the EUR 150 million to EUR 170 million. The FY2019 will be driven by the special factors that moved the aluminium market in 2018.
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