Higher aluminium price lifts Q1 2018 revenue of AMAG Austria despite lower shipment

AMAG Austria, a leading Austrian premium supplier of high-quality aluminium cast and flat rolled products reported results for Q1 2018. The market environment was positive during the first months of 2018; despite various developments like US import tariffs on aluminium, alumina production cut at Alunorte Brazil and US sanctions against Russia affecting price and supply.

AMAG Austria Metall AG revenue grew by 2 % to EUR 263.2 million due to the higher aluminium price, although shipments by the AMAG Group were down by around 6 % year-on-year to 101,000 tonnes, mainly due to the planned upgrades in the Casting Division.

EBITDA stood at EUR 38.9 million, down compared with EUR 43.4 million in the first quarter of 2017, due to higher start-up costs associated with the site expansion programme. AMAG achieved an operating result (EBIT) of EUR 18.6 million in the first quarter of 2018, down from EUR 24.7 million in Q1 2017, and net income after taxes of EUR 12.9 million, down from EUR 16.5 million in Q1 2017.

Commenting on the results, Helmut Wieser, CEO of AMAG said, "Our order books are well filled for the coming months and we are increasingly getting customer approvals for our new plant. For the 2018 financial year we expect significant volume growth in the Rolling Division."

Cash flow from operating activities almost doubled compared with the first quarter of 2017, rising from EUR 7.6 million to EUR 14.0 million. AMAG continues to have a solid balance sheet and financing structure.

Rising demand for primary aluminium and aluminium rolled products as well as the ramp-up of the new plants form a good basis for further growth at AMAG’s Ranshofen site. Taking the past weeks' market conditions into consideration, AMAG expects an EBITDA of EUR 150 million to EUR 170 million for 2018.