EQS-News: AMAG Austria Metall AG: Solid trend in the first three quarters of 2023 due to broad positioning

EQS-News: AMAG Austria Metall AG / Key word(s): 9 Month figures/Quarter
   Results
   AMAG Austria Metall AG: Solid trend in the first three quarters of 2023
   due to broad positioning

   25.10.2023 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Ranshofen, October 25, 2023

   AMAG Austria Metall AG: Solid trend in the first three quarters of 2023
   due to broad positioning

     • Product and sector diversity as well as the interest held in the
       smelter in Canada secure solid earnings trend within a challenging
       environment
     • Continued positive trend in demand from the aircraft sector; stable
       development in the automotive industry; sports and architectural
       products as well as industrial applications still at a low level
     • Revenue of EUR 1,142.8 million significantly exceeds EUR 1 billion
       level (Q1-Q3/2022: EUR 1,353.9 million)
     • EBITDA at EUR 166.0 million due to overall good performance in the
       operating divisions (Q1-Q3/2022: EUR 217.4 million)
     • Net income after taxes at a solid level of EUR 69.7 million
       (Q1-Q3/2022: EUR 106.7 million)
     • Significant growth in cash flow from operating activities to
       EUR 157.0 million (Q1-Q3/2022: EUR 40.5 million)
     • Guidance for FY 2023: EBITDA range between EUR 175 million and
       EUR 195 million

   Due to its broad positioning, AMAG Group recorded solid revenue and
   earnings trends in the first three quarters of 2023. With demand from the
   aircraft and automotive sectors remaining positive, significant reductions
   in industrial applications, sports and architectural products were
   flexibly offset. The satisfactory profitability of the smelter in Canada
   also exerted a compensatory effect.

   Gerald Mayer, CEO of AMAG Austria Metall AG, comments: “With an operating
   result significantly above the pre-crisis level from 2019, we look back on
   a satisfactory earnings development overall. Nevertheless, the current
   recession is not sparing AMAG. The significant decline in demand,
   particularly for industrial applications, could only be partially
   compensated by the AMAG Group's broad positioning, its interest in Canada
   and its high flexibility. Order intake from the aircraft sector continues
   to be positive."

   AMAG Group’s revenues clearly exceeded the EUR 1 billion level in the
   first three quarters of 2023 at EUR 1,142.8 million (Q1-Q3/2022:
   EUR 1,353.9 million). Compared with the previous year, the lower aluminium
   price and especially the reduction in shipments of aluminium rolled
   products had a noticeable impact. AMAG Group’s total shipments amounted to
   327,700 tonnes (Q1-Q3/2022: 341,500 tonnes).

   Earnings before interest, tax, depreciation and amortisation (EBITDA)
   amounted to EUR 166.0 million in the period under review, compared with
   EUR 217.4 million in the prior-year period. The Metal Division continued
   to benefit from stable production levels at the interest held in Canada’s
   Alouette smelter, given lower aluminium prices overall. In the Casting
   Division, the continued stable market environment in the automotive
   industry was leveraged to best effect. In the Rolling Division, the
   market-related decrease in demand from the mentioned industries was
   optimally offset thanks to the high level of sector and product diversity.

   Depreciation and amortisation decreased to EUR 63.8 million in the first
   three quarters (Q1-Q3/2022: EUR 65.7 million). At EUR 102.2 million,
   operating profit (EBIT) once again exceeded the EUR 100 million level
   (Q1-Q3/2022: EUR 151.6 million). Net income after taxes for the first nine
   months amounted to EUR 69.7 million (Q1-Q3/2022: EUR 106.7 million).

   The positive trend in cash flow from operating activities continued
   successfully in the third quarter of 2023. After nine months, operating
   cash flow of EUR 157.0 million was generated (Q1-Q3/2022:
   EUR 40.5 million). This was particularly due to the high level of
   operating profit as well as working capital reduction. Capital expenditure
   amounted to a total of EUR 75.4 million (Q1-Q3/2022: EUR 48.8 million).
   Accordingly, free cash flow improved significantly to EUR 81.6 million in
   the period under review (Q1-Q3/2022: EUR -8.3 million).

   Net financial debt stood at EUR 369.3 million as of September 30, 2023,
   compared with EUR 393.3 million as of the end of the 2022 financial year.
   Equity grew from EUR 710.3 million at the end of 2022 to EUR 749.4 million
   as of the end of the third quarter. The equity ratio rose to 42.7 %
   (December 31, 2022: 39.6 %).

   Earnings trends in the third quarter of 2023

   Total shipments in the third quarter of 2023 amounted to 106,500 tonnes
   (Q3/2022: 116,400 tonnes). The average aluminium price decreased
   quarter-on-quarter from 2,358 USD/tonne to 2,200 USD/tonne. Overall, this
   reduced AMAG Group revenue to EUR 346.4 million (Q3/2022:
   EUR 449.6 million).

   EBITDA again reached a solid level of EUR 48.2 million (Q3/2022:
   EUR 60.8 million). Earnings in the Metal Division remained stable. The
   Casting Division maintained shipment volumes at a high level compared to
   the same quarter of the previous year. In the Rolling Division, market
   turbulence was optimally countered by its broad portfolio.

   Including depreciation and amortisation of EUR 21.4 million (Q3/2022:
   EUR 22.0 million), EBIT of EUR 26.8 million was generated in the third
   quarter of 2023 (Q3/2022: EUR 38.8 million). Net income after taxes
   amounted to EUR 18.7 million (Q3/2022: EUR 28.3 million). Cash flow from
   operating activities was again very positive in the third quarter of 2023
   at EUR 89.0 million (Q3/2022: EUR 124.6 million).

   Outlook for 2023:

   Overall, current forecasts[1][1] of demand trends confirm growth in demand
   for aluminium products in the medium and long term. In the short term
   (2023), demand for aluminium rolled products will diminish across all
   industries, with the exception of the transport sector. AMAG Group’s
   diverse setup exerts a particularly balancing and stabilising effect
   within this market environment.

   The Metal Division has benefited for many years from the efficient smelter
   operations in Canada. Depending on the further trend in aluminium and raw
   materials prices, earnings are also anticipated to remain stable in the
   fourth quarter of 2023. The Casting Division is also expected to achieve a
   high level of capacity utilisation and consequently a solid earnings
   performance during the remainder of 2023. The Rolling Division can
   successfully participate in rising build rates in the aircraft industry
   and stable demand for automotive products to date. The subdued market
   environment is having a particularly strong impact on industrial
   applications and on the sports and architecture sectors.

   Geopolitical conflicts as well as interest rate and inflation trends, in
   particular, are continuing to represent major uncertainties leading to
   rapid changes in the market environment.

   From today’s perspective and on the basis of current price assumptions,
   the AMAG Management Board expects EBITDA of between EUR 175 million and
   EUR 195 million for the 2023 financial year.

    

   AMAG – key figures:

    

                       Q3/2023 Q3/2022  Change Q1-Q3/2023 Q1-Q3/2022  Change
   Shipments in tonnes 106,500 116,400  -8.5 %    327,700    341,500   -4.0 %
   of which external
   shipments in tonnes  98,300 107,600  -8.6 %    303,700    319,200   -4.9 %
   Revenue in EUR
   million               346.4   449.6 -23.0 %    1,142.8    1,353.9  -15.6 %
   EBITDA in EUR
   million                48.2    60.8 -20.7 %      166.0      217.4  -23.6 %
   EBIT in EUR million    26.8    38.8 -31.0 %      102.2      151.6  -32.6 %
   Net income after
   taxes in EUR
   million                18.7    28.3 -34.0 %       69.7      106.7  -34.7 %
   Cash flow from
   operating
   activities in EUR
   million                89.0   124.6 -28.6 %      157.0       40.5 +287.6 %
   Cash flow from
   investing
   activities in EUR
   million               -24.8   -19.1 -29.9 %      -75.4      -48.8  -54.5 %
   Employees in FTE^1)   2,272   2,240  +1.4 %      2,249      2,218   +1.4 %

    

                         September 30, 2023 December 31, 2022 Change
   Equity in EUR million              749.4             710.3 +5.5 %
   Equity ratio in %                 42.7 %            39.6 %       
   Gearing in %                      49.3 %            55.4 %       

   [1) Average number of employees (full-time equivalents), including
   contract workers and excluding apprentices. Includes personnel from the
   Alouette smelter (20 %) and of AMAG components.]

   About the AMAG Group

   AMAG is a leading Austrian premium supplier of high-quality aluminium cast
   and flat rolled products for highly varied industries such as the
   aircraft, automotive, sports equipment, lighting, mechanical engineering,
   construction and packaging industries. The Canadian smelter Alouette, in
   which AMAG holds a 20 % interest, produces high-quality primary aluminium,
   while maintaining an exemplary net ecological impact. At AMAG components,
   based in Übersee am Chiemsee (Germany), ready-to-install metal parts are
   also manufactured for the aircraft industry.

    

   Investor contact                 Press contact
   Christoph M. Gabriel             Leopold Pöcksteiner
   Head of Investor Relations       Head of Corporate Communications
   AMAG Austria Metall AG           AMAG Austria Metall AG
   Lamprechtshausener Straße 61     Lamprechtshausener Straße 61
   5282 Ranshofen, Austria          5282 Ranshofen, Austria
   Tel.:  +43 (0) 7722-801-3821     Tel.:  +43 (0) 7722-801-2205
   Email: [email protected] Email: [email protected]
                                     
   Website: www.amag-al4u.com        

    

   Note

   The forecasts, budgets and forward-looking assessments and statements
   contained in this publication were compiled on the basis of all
   information available to AMAG as of October 18, 2023. In the event that
   the assumptions underlying these forecasts prove to be incorrect, targets
   be missed, or risks materialise, actual results may diverge from those
   currently anticipated. We are not obligated to revise these forecasts in
   the light of new information or future events.

   This publication was prepared and the data contained in it verified with
   the greatest possible care. Nevertheless, misprints and rounding and
   transmission errors cannot be ruled out entirely. In particular, AMAG and
   its representatives do not assume any responsibility for the completeness
   and correctness of information included in this publication. This
   publication is also available in German. In cases of doubt, the
   German-language version takes precedence.

   This publication does not comprise either a recommendation or a
   solicitation to either purchase or sell securities of AMAG.

      

   [2]^[1] Commodity Research Unit, Aluminium Market Outlook, July 2023, and
   Aluminium Rolled Products Market Outlook, August 2023

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   25.10.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     AMAG Austria Metall AG
                Lamprechtshausener Straße 61
                5282 Ranshofen
                Austria
   Phone:       +43 7722 801 0
   Fax:         +43 7722 809 498
   E-mail:      [email protected]
   Internet:    www.amag-al4u.com
   ISIN:        AT00000AMAG3
   WKN:         A1JFYU
   Listed:      Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
                Munich, Stuttgart; Vienna Stock Exchange (Official Market)
   EQS News ID: 1755501


    
   End of News EQS News Service


   1755501  25.10.2023 CET/CEST

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