AMAG sees lower profit as aluminium prices fall

Austria Metall AG (AMAG) forecast a fall in core profit of up to 13 percent this year as aluminium prices fall and reported a 10 percent drop in the second quarter, though this was not as severe as expected.

AMAG, which is 54 percent owned by a consortium of B&C Industrieholding, Oberbank and the AMAG employees' foundation, said its three divisions had run at full capacity in the first half and it expected this to continue in the third quarter.

"The management expects a positive year from an operational point of view, although the factors ... like (the) aluminium price and pressure on margins are likely to result in a year-on-year decline in profit," it said in a statement.

AMAG said it expected full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of between 116 and 121 million euros ($154 and $160 million), down from 134 million in 2012.

The company, which produces primary and liquid aluminium as well as aluminium products for the aircraft and automotive industries, said the average aluminium price had fallen 8 percent in the first half.

The company's second-quarter results beat average forecasts in a Reuters poll on all levels, with stable shipments of 93,700 tonnes, sales down 6 percent to 210 million euros and net income after taxes down 8 percent to 19 million euros.

Analysts had on average expected 16.7 million euros net after tax. ($1 = 0.7557 euros)