EANS-News:
AMAG Austria Metall AG: Aluminium price and raw materials costs impact Q1 2019
results
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is responsible for the content of this announcement.
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Quarterly Report
Ranshofen -
* Market environment characterised by a lower aluminium price and high raw
material prices
* Ramp-up of new plants in the Rolling Division successfully continued
* Revenue up by 4 % to EUR 274.4 million mainly due to shipments increase in the
Rolling Division
* EBITDA of EUR 33.0 million compared with EUR 38.9 million in Q1/2018;
* 2019 outlook: EBITDA in a range between EUR 125 million and EUR 155 million
Market environment
Global demand for primary aluminium and aluminium rolled products continued to
grow in the first quarter of 2019. The market environment, however, was
characterised by unfavourable price trends for aluminium and alumina compared
with the first quarter of 2018. While the average aluminium price fell by 13 %
from 2,164 USD/t to 1,880 USD/t, the average market price for alumina rose by
around 2 % compared with the same period of the previous year.
Q1 2019 in figures:
Because of the positive ramp-up of the new plants in the Rolling Division and
the new melting furnace in the Casting Division, shipment volumes were up by 10
% to 111,600 tonnes compared to the first quarter of the previous year.
The AMAG Group's revenue increased by 4 % year-on-year from EUR 263.2 million to
EUR 274.4 million, which is attributable, in particular, to the higher volume in
the Rolling Division.
Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted
to EUR 33.0 million in the first quarter of 2019, compared with EUR 38.9 million
in the prior-year period. Lower aluminium prices and higher raw material costs
had a particularly negative impact. The higher shipments volumes only partially
offset this effect.
EBITDA in the Metal Division reduced significantly from EUR 10.6 million to EUR
0.1 million mainly due to the lower realised aluminium price and higher raw
material costs.
EBITDA in the Casting Division benefited from significant growth in shipments.
In addition, the first-time application of the new IFRS 16 "Leases" led to an
EBITDA shift from the Service Division to the Casting Division of EUR 0.4
million in the first quarter of 2019. Overall, EBITDA in the Casting Division
climbed from EUR 1.1 million to EUR 1.9 million.
In the Rolling Division, the ramp-up of the new plants continued successfully.
The 9 % increase in shipments from 54,400 to 59,200 tonnes contributed
significantly to the earnings increase year-on-year. Moreover, the first-time
application of the IFRS16 standard led to an EBITDA shift of EUR 3.6 million
from the Service Division to the Rolling Division. Overall, EBITDA in the
Rolling Division grew from EUR 24.3 million to EUR 32.1 million.
EBITDA in the Service Division decreased year-on-year from EUR 3.0 million to
EUR -1.1 million in the first quarter, especially as a consequence of the
aforementioned shifts in to the Casting and Rolling divisions of around EUR 4.0
million due to IFRS 16.
Including almost unchanged depreciation and amortisation compared to the
previous year (EUR 20.2 million after EUR 20.4 million in the first quarter of
2018), earnings before interest and taxes (EBIT) for the AMAG Group amounted to
EUR 12.8 million, after EUR 18.6 million in the first quarter of 2018. Net
income after taxes amounted to EUR 7.6 million in the first quarter of 2019 (Q1
2018: EUR 12.9 million).
In the first three months of 2019, cash flow from operating activities was
impacted by the earnings trend and the aluminium price trend, and reduced from
EUR 14.0 million to EUR 7.8 million in a year-on-year comparison. Cash flow from
investing activities of EUR -21.9 million was nearly unchanged compared with the
first quarter of 2018.
AMAG reports a solid balance sheet and financing structure. At 39.8 %, the
equity ratio remained unchanged compared with December 31, 2018, while the
gearing ratio rose moderately from 50.1 % at the end of the year 2018 to 52.8 %
due to a higher working capital.
2019 outlook:
Market research institute CRU expects global demand for primary aluminium to
grow by around 2 % in 2019. Global demand for aluminium rolled products is
expected to increase by around 3 % in 2019.
Experience shows that prices for aluminium and alumina can exhibit high
volatilities over the course of the year. Additional forecasting uncertainties
exist in connection with general economic trends, trade conflicts and customer
sales trends, particularly in the transport industry.
Due to the outlined uncertainties, an earnings forecast is only possible in the
form of a wide range. According to current estimates, EBITDA in the 2019
financial year is expected in a range between EUR 125 million and EUR 155
million.
AMAG - key figures:
_____________________________________________________________________________
|EUR_millions_____|____________Q1_2019|____________Q1_2018|_____________Change|
|Shipments in | 111,600| 101,000| 10.5 %|
|tonnes___________|___________________|___________________|___________________|
|of which external| | | |
|shipments in | 103,000| 97,200| 6.0 %|
|tonnes___________|___________________|___________________|___________________|
|Revenue__________|______________274.4|______________263.2|______________4.3_%|
|EBITDA___________|_______________33.0|_______________38.9|____________-15.2_%|
|EBIT_____________|_______________12.8|_______________18.6|____________-31.2_%|
|Net income after | 7.6| 12.9| -40.6 %|
|taxes____________|___________________|___________________|___________________|
|Cash flow from | | | |
|operating | 7.8| 14.0| -44.3 %|
|activities_______|___________________|___________________|___________________|
|Cash flow from | | | |
|investing | -21.9| -21.7| -0.9 %|
|activities_______|___________________|___________________|___________________|
|Employees1)______|______________1,976|______________1,919|______________3.0_%|
______________________________________________________________________________
|EUR_millions|___________31/03/2019|___________31/12/2018|_______________Change|
|Equity______|________________622.3|________________620.9|________________0.2_%|
|Equity_ratio|_______________39.8_%|_______________39.8_%|____________________-|
|Gearing_____|_______________52.8_%|_______________50.1_%|____________________-|
1) Average number of employees (full-time equivalents) including temporary help
workers and excluding apprentices. The figure includes a 20 percent pro rata
share of the labour force at the Alouette smelter, in line with the equity
holding.
Further inquiry note:
Investor contact:
Felix Demmelhuber
Head of Investor Relations
AMAG Austria Metall AG
Lamprechtshausenerstrasse 61
5282 Ranshofen, Austria
Tel.: +43 (0) 7722-801-2203
Email: investorrelations@amag.at
Press contact:
Leopold Pöcksteiner
Head of Strategy, Communication, Marketing
AMAG Austria Metall AG
Lamprechtshausenerstrasse 61
5282 Ranshofen, Austria
Tel.: +43 (0) 7722-801-2205
Email: publicrelations@amag.at
end of announcement euro adhoc
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issuer: AMAG Austria Metall AG
Lamprechtshausenerstraße 61
A-5282 Ranshofen
phone: +43 7722 801 0
FAX: +43 7722 809 498
mail: investorrelations@amag.at
WWW: www.amag.at
ISIN: AT00000AMAG3
indexes: WBI, ATX GP, VÖNIX, ATX BI
stockmarkets: Wien
language: English