EANS-News: AMAG Austria Metall AG continues on growth track in FY 2018, setting
new shipment and revenue records
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Annual Reports/Financial Figures/Balance Sheet/Annual Result
Ranshofen - AMAG continues on growth track in FY 2018, setting new shipment and
revenue records
- Market: rising global demand for aluminium; environment in 2018 characterised
by several special effects
- New records in shipments and Revenue
- Total shipments: +1 % to 424,600 tonnes
- Revenue: +6 % to EUR 1,101.6 million
- EBITDA of EUR 141.0 million down on previous year's EUR 164.5 million
especially due to higher raw materials costs
-Proposed dividend per share of EUR 1.20 unchanged compared with the previous
year
AMAG Austria Metall AG continued successfully on its growth track in the 2018
financial year. Supported by rising demand for aluminium products combined with
good progress in the ramp-up of the new plants in Ranshofen, the AMAG Group's
total shipments rose to a record of 424,600 tonnes (2017: 421,700 tonnes).
Helmut Wieser, CEO of AMAG: "We implemented our two site expansion projects
within budget and on schedule, and we are also making good progress in the
demanding ramp-up of our new facilities. In 2018, we achieved important
qualifications in the packaging, aircraft and automotive industries. This
created the basis for further growth in the coming years."
Higher shipment volumes and the higher average aluminium price contributed to a
new record revenue level, which was up by around 6 % to EUR 1,101.6 million
(2017: EUR 1,036.2 million).
The market environment and consequently also AMAG Group earnings were
significantly affected by external market factors in the 2018 financial year.
The introduction of additional US import tariffs on aluminium had a negative
impact on earnings in the mid-single-digit range in millions of euros for
shipments from Austria to the USA. The production cut ordered by the authorities
at the world's largest alumina refinery in Brazil as well as US sanctions on one
of the largest alumina and primary aluminium producers led to high price
fluctuations for alumina and aluminium. In particular, the price of alumina rose
significantly compared with the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in the
2018 financial year amounted to EUR 141.0 million, down by around 14 % on the
previous year's EUR 164.5 million. This was especially due to higher raw
material costs, US import tariffs on aluminium, higher ramp-up costs for the
site expansion and unfavourable valuation effects as of the year-end. This also
led the operating result (EBIT) to reduce from EUR 86.8 million to EUR 60.6
million. The AMAG Group generated net income after taxes of EUR 44.5 million in
the 2018 financial year (2017: EUR 63.2 million).
Free cash flow improved year-on-year from EUR -6.3 million to EUR 11.5 million.
Cash flow from operating activities stood at EUR 94.3 million (2017: EUR 101.8
million), more than offsetting cash flow from investing activities of EUR -82.8
million (2017: EUR -108.2 million).
AMAG reports a solid balance sheet and financing structure. In a comparison of
the two balance sheet dates, equity rose from EUR 607.9 million to EUR 620.9
million. Long-term financing on favourable terms was concluded with the
successful placing of a promissory note loan. Especially for this reason, total
assets rose from EUR 1,404.9 million at year-end 2017 to EUR 1,561.2 million as
of December 31, 2018. This extension of the balance sheet led arithmetically to
a slightly lower equity ratio of 39.8 % as of the 2018 year-end (December 31,
2017: 43.3 %).
Attractive dividend:
For the 2018 financial year, the Management Board is proposing to the AGM to pay
a year-on-year unchanged dividend of EUR 1.20 per share. This corresponds to a
dividend yield of around 4 % in relation to the year-end closing price of the
AMAG share of EUR 31.20.
2019 outlook:
Attractive global demand growth can be expected in 2019 and in the next five
years for both primary aluminium products and aluminium rolled products,
according to the latest estimates of the CRU market research institute.
For 2019, CRU expects global demand for primary aluminium to grow by around 3 %.
Global demand for aluminium rolled products is expected to increase by around 4
%. The largest percentage growth is forecast in the transport sector with a rise
of around 7 %.
Promising market growth, the solid balance sheet and the growth investments that
have been realised form a good starting position for the coming years.
Gerald Mayer, Chief Financial Officer and, from March 1, 2019, Chief Executive
Officer of AMAG: "We will consistently pursue our growth strategy. In the 2019
financial year, AMAG will continue to benefit from further volume growth as part
of the ramp-up. This brings us a further significant step closer to our shipment
target of more than 300,000 tonnes of aluminium rolled products."
Experience shows that the raw material markets can be subject to high price
fluctuations which can significantly affect AMAG Group earnings. For this
reason, it is still too early to issue an earnings forecast for the 2019
financial year, especially as economic uncertainties - such as those related to
the UK's withdrawal from the EU and weak car sales - have risen further.
Annual Report 2018:
The 2018 annual report is immediately available for downloading from the
investor relations area of the AMAG website.
AMAG - key figures:
_____________________________________________________________________________
|EUR_millions_____|_______________2018|_______________2017|_____________Change|
|Shipments in | 424,600| 421,700| 0.7 %|
|tonnes___________|___________________|___________________|___________________|
|of which external| | | |
|shipments in | 397,500| 395,900| 0.4 %|
|tonnes___________|___________________|___________________|___________________|
|Revenue__________|____________1,101.6|____________1,036.2|______________6.3_%|
|EBITDA___________|______________141.0|______________164.5|____________-14.3_%|
|EBIT_____________|_______________60.6|_______________86.8|____________-30.1_%|
|Net income after | 44.5| 63.2| -29.5 %|
|taxes____________|___________________|___________________|___________________|
|Cash flow from | | | |
|operating | 94.3| 101.8| -7.4 %|
|activities_______|___________________|___________________|___________________|
|Cash flow from | | | |
|investing | -82.8| -108.2| 23.5 %|
|activities_______|___________________|___________________|___________________|
|Employees1)______|______________1,959|______________1,881|______________4.1_%|
______________________________________________________________________________
|EUR_millions|___________31/12/2018|___________31/12/2017|_______________Change|
|Equity______|________________620.9|________________607.9|_______________+2.1_%|
|Equity_ratio|_______________39.8_%|_______________43.3_%|____________________-|
|Gearing_____|_______________50.1_%|_______________46.4_%|____________________-|
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 Relations:
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
Media:
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