EQS-News: AMAG Austria Metall AG: Challenging environment influences quarterly result

EQS-News: AMAG Austria Metall AG / Key word(s): Quarter Results
   AMAG Austria Metall AG: Challenging environment influences quarterly
   result

   24.04.2024 / 07:20 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Ranshofen, April 24, 2024

    

   AMAG Austria Metall AG: Challenging environment influences quarterly
   result

     • Quarterly performance influenced by lower aluminium price and lower
       shipment volumes due to partly subdued incoming orders in Q4/2023
     • Revenue of EUR 335.8 million below the previous year's level due to
       price and volume factors (Q1/2023: EUR 404.8 million)
     • EBITDA of EUR 42.4 million above Q4/2023, but lower than in previous
       year’s quarter (Q1/2023: EUR 60.8 million)
     • Net income after taxes at EUR 13.3 million (Q1/2023: EUR 26.8 million)
     • Cash flow from operating activities of EUR 35.6 million at the
       previous year's level (Q1/2023: EUR 35.6 million)
     • Outlook for 2024: From today's perspective and assuming no significant
       global deterioration in the economic situation, full-year EBITDA is
       expected to be between EUR 150 million and EUR 180 million

   AMAG Austria Metall AG achieved a significant improvement in earnings
   compared to the fourth quarter of 2023. Compared to the same quarter of
   the previous year, Q1/2023, however, the significantly gloomier economic
   environment, especially in Europe, was reflected. In the Metal Division, a
   lower aluminium price in particular had a noticeable impact on revenues
   and earnings, while production of primary aluminium remained stable. The
   Ranshofen site continued to generate solid shipments in the Casting
   Division. As expected, the Rolling Division was affected by the generally
   subdued order intake in Q4/2023 and therefore lower shipments of aluminium
   rolled products in Q1/2024. Sales volumes to the transport industry
   continued to develop positively.

   At EUR 335.8 million, the AMAG Group's revenue primarily reflects the
   lower aluminium price level and the lower shipment volumes (Q1/2023: EUR
   404.8 million). Total shipments in Q1/2024 amounted to 104,200 tonnes
   after 110,400 tonnes in the first quarter of the previous year.

   At EUR 42.4 million, earnings before interest, taxes, depreciation and
   amortisation (EBITDA) were down on the previous year (Q1/2023: EUR 60.8
   million), but well above the results from Q4/2023.

   The Metal Division generated EBITDA of EUR 17.2 million in the first
   quarter of 2024 (Q1/2023: EUR 18.4 million), which is still well above the
   average quarterly result of recent years. With production remaining
   stable, the lower aluminium price and premium level as well as the higher
   alumina costs in relation to the aluminium price had a particularly
   noticeable effect compared to the previous year.

   The Casting Division once again achieved solid sales of recycling foundry
   alloys in the first three months of 2024, slightly below the level of
   Q1/2023. Higher structural costs and a change in market price levels were
   only partially offset by lower energy prices. EBITDA thus totalled EUR 2.2
   million after EUR 4.1 million in the first quarter of the previous year.

   The Rolling Division generated EBITDA of EUR 22.5 million in the first
   quarter of 2024 (Q1/2023: EUR 40.0 million) with lower sales volumes due
   to the subdued order development in Q4/2023. Product mix optimisations and
   lower energy and raw material prices partially cushioned the
   market-related decline in sales volumes and the lower price level.

   After taking into account depreciation and amortisation of EUR 22.2
   million, the AMAG Group reported earnings before interest and taxes (EBIT)
   of EUR 20.2 million (Q1/2023: EUR 39.5 million).

   Net income after taxes amounted to EUR 13.3 million in the first quarter
   of 2024 after EUR 26.8 million in the first quarter of the previous year.

   Cash flow from operating activities benefited from the high operating
   result and thus remained unchanged from the previous year at EUR 35.6
   million. Taking into account the cash flow from investing activities in
   the amount of EUR -26.0 million (Q1/2023: EUR -23.5 million), a free cash
   flow of EUR 9.6 million (Q1/2023: EUR 12.0 million) was generated.

   Net financial debt as of 31 March, 2024 improved to EUR 356.7 million
   (December 31, 2023: EUR 364.3 million). Liquidity also increased to
   EUR 178.2 million as at 31 March, 2024 (December 31, 2023: EUR 168.9
   million).

   Outlook 2024:

   Following a subdued order trend in the fourth quarter of the previous
   year, the first three months of 2024 showed an overall improvement in the
   order situation in an economic environment that remains gloomy, especially
   in Europe. The current GDP forecasts for Germany and Austria are a modest
   +0.2% for 2024, while economic growth in the eurozone is expected to be
   slightly better at +0.7%.[1][1] In the medium to long term, current CRU
   forecasts[2][2] confirm a positive trend in demand for aluminium across
   all sectors, with the transport sector in particular expected to develop
   positively.

   Dr. Helmut Kaufmann, CEO of AMAG: "Overall, we can look back on a
   challenging first quarter of 2024. The order situation has improved
   somewhat, although some industries are showing restraint as expected. We
   will continue to utilise our broad positioning and high product diversity
   and respond flexibly to the market environment with our international
   customer structure."

   The further course of business will depend, among other things, on demand
   trends in the sales markets relevant to AMAG and on aluminium price
   trends. At present, solid shipment volumes are expected in the Metal and
   Casting divisions. Based on current economic forecasts, we anticipate an
   improved sales situation in the Rolling Division in the second half of
   2024.

   From today's perspective and assuming no significant global deterioration
   in the economic situation, full-year EBITDA is expected to be between
   EUR 150 million and
   EUR 180 million. 

    

   AMAG key figures: 

                                                      Q1/2024 Q1/2023 Change
   Shipments in tonnes                                104,200 110,400  -5.7%
   of which external shipments in tonnes               95,500 102,800  -7.1%
   Revenue in EUR million                               335.8   404.8 -17.0%
   EBITDA in EUR million                                 42.4    60.8 -30.3%
   EBIT in EUR million                                   20.2    39.5 -49.0%
   Net income after taxes in EUR million                 13.3    26.8 -50.4%
   Cash flow from operating activities in EUR million    35.6    35.6   0.0%
   Cash flow from investing activities in EUR million   -26.0   -23.5  10.5%
   Employees in FTE^1)                                  2,240   2,219   0.9%

    

                         March 31, 2024 December 31, 2023 Change
   Equity in EUR million          768.5             746.3   3.0%
   Equity ratio in %              47.0%             46.1%       
   Gearing in %                   46.4%             48.8%       

   [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
   Phone: +43 (0) 7722-801-3821     Phone: +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 April 12, 2024. 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.  

   [3]^[1] See WIFO Economic Forecast 1/2024, March 2024

   [4]^[2] See Commodity Research Unit, Aluminium Market Outlook, January
   2024 & Aluminium Rolled Products Market Outlook, February 2024

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   24.04.2024 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: 1886501


    
   End of News EQS News Service


   1886501  24.04.2024 CET/CEST

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