AMAG’s Jan-Sept revenue drops 18.1% YoY due to lower shipments in Casting and Rolling Divisions

AMAG Austria Metall AG has announced the comprehensive financial and operational reports for the first nine months of the year 2020, revealing that its revenue decreased by 18.1 per cent year-on-year from EUR 821.5 million to EUR 673.2 million. Earnings before interest tax, depreciation and amortisation (EBITDA) also plunged by 26.92 per cent from EUR 109.2 million to EUR 79.8 million during January-September 2020.

The Y-o-Y decline in revenue and EBITDA reflects lower total shipment volumes in the Casting and Rolling Divisions – especially in the transport sector and in the distribution area – accompanied by a change in the product mix and lower price levels. Although primary aluminium shipments increased compared with the previous year, total shipments stood down from 336,500 tonnes in the year ago to 303,900 tonnes. Besides, lower aluminium prices exerted a negative effect. In the first three quarters of 2020, the average aluminium price amounted to US$ 1663 per tonne, down by 9 per cent year-on-year.

AMAG’s Casting Division achieved an EBITDA of EUR 4.9 million during January-September 2020 versus EUR 6.2 million during the same period last year. EBITDA is the Rolling Division amounted to EUR 42.3 million compared with EUR 89.9 million in the previous year.

EBIT amounted to EUR 17.7 million, compared with EUR 47.9 million in the previous year. Net income after taxes decreased from EUR 30.0 million to EUR 11.1 million.

However, cash flow from operating activities reported a positive level in difficult times as it stood at EUR 102.3 million in the first three quarters of 2020, a little lower from EUR 108.3 million during the same period last year. Net debt also improved noticeably from EUR 292.9 million at the end of 2019 to EUR 250.6 million as of September 30, 2020.

“Our strategic focus on innovation and specialty products for various sectors, as well as sustainability, forms the basis for our solid business growth within a volatile environment. In combination with the adjustment of our structural costs to align with current capacity utilisation, we achieved a satisfactory result given the difficult economic situation. With the completion of our acquisition of a majority interest in Germany’s Aircraft Philipp Group, we are consistently pursuing our strategic path in the direction of value creation and our proximity to customers,” said Gerald Mayer, AMAG’s CEO.

AMAG in September announced its acquisition of a 70 per cent interest in Germany’s Aircraft Philipp Group, which is to be completed on October 30, 2020. This extends AMAG’s value chain in the direction of mechanical processing (such as milling and drilling) and the production of specialty aluminium and titanium components.

AMAG recently received the ASI Chain of Custody standard certification, which enables the company to supply certified aluminium, taking into account the entire supply chain - from bauxite mining to AMAG's semi-finished & finished products.