EANS-News: AMAG Austria Metall AG achieves record earnings in the first three quarters of 2021
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Quarterly Report
Ranshofen -
* Revenue significantly increased to EUR 923.8 million due to both higher
shipment volumes and attractive aluminium price (Q1-Q3/2020:
EUR 673.2 million)
* EBITDA of EUR 146.5 million clearly above previous year (Q1-Q3/2020:
EUR 79.8 million)
* Net income after taxes up more than fivefold year-on-year to reach
EUR 57.0 million (Q1-Q3/2020: EUR 11.1 million)
* Production in Canada significantly contributes to AMAG's positive business
performance
* Outlook for 2021: Increase of the EBITDA range to between EUR 175 and EUR 195
million, especially due to an improved forecast for the Metal Division as a
consequence of higher aluminium price. Increasing influence of rising
production costs
The AMAG group achieved new highs in revenue and earnings in the first nine
months of 2021. The main reasons were a stable production performance,
increasing shipment volumes and an attractive aluminium price.
As Gerald Mayer, CEO of AMAG Austria Metall AG, commented: "After a difficult
year 2020, we have been able to cope with the challenges in connection with the
rapid recovery since the beginning of the year and have achieved a very positive
result. Aluminium production in Canada contributes significantly to that. At our
Ranshofen site, we successfully met high demand from various industries and at
the same time implemented planned plant modernisations on schedule. The most
important bottleneck is currently the availability of suitable specialist staff
for production. At present we are looking for around 100 employees."
Revenue reflects the higher aluminium price and premium level as well as the
increase in shipment volumes. Specifically, the first three quarters of 2021
reflect an average 3-month aluminium price of 2,393 USD/t compared with 1,663
USD/t in the previous year (+44 %). Shipment volumes were up by 33,900 tonnes to
337,800 tonnes. Overall, revenue thereby reached a new high of EUR 923.8 million
in the first nine months of the reporting year (Q1-Q3/2020: EUR 673.2 million).
At EUR 146.5 million, earnings before interest, taxes, depreciation and
amortisation (EBITDA) once again represent a record figure in AMAG's history,
following the pleasing half-year result (Q1-Q3/2020: EUR 79.8 million). The pre-
crisis result of 2019 (EUR 143,0 million) therefore has already been
outperformed. Higher revenue and full capacity utilisation at the Canadian
smelter contributed significantly in this context. An increase in demand for
recycled cast alloys and aluminium rolled products was successfully leveraged,
leading to a considerable rise in shipment volumes.
After taking into account depreciation and amortisation of EUR 62.7 million (Q1-
Q3/2020: EUR 62.0 million), the operating result (EBIT) of EUR 83.9 million in
the period under review was also clearly above the previous year's level (Q1-Q3/
2020: EUR 17.7 million).
Net income after taxes rose more than fivefold year-on-year to reach EUR 57.0
million as of the end of the first three quarters of 2021 (Q1-Q3/2020: EUR 11.1
million).
Cash flow from operating activities amounted to EUR 68.1 million in the
reporting period under review (Q1-Q3/2020: EUR 102.3 million). The higher
earnings had a positive impact, while the significant rise in the price of
aluminium had the opposite effect. Investments count for EUR 43.7 million in the
first nine months of 2021, compared with EUR 39.7 million in the previous year.
Therefore, the AMAG Group reports a free cash flow of EUR 24.4 million (H1/2020:
EUR 62.6 million).
Net financial debt remains stable at EUR 300.0 million as of September 30, 2021
(December 31, 2020: EUR 314.3 million).
At EUR 599.4 million, the AMAG Group's equity also stood at its usual solid
level as of the current quarterly reporting date (December 31, 2020: EUR 602.7
million). The equity ratio currently amounts to 38.2 %, compared with 38.9 % as
of December 31, 2020.
Earnings trends in Q3/2021
Total shipments reported significant growth to a level of 111,700 tonnes in Q3/
2021 (Q3/2020: 100,700 tonnes). A 52 % higher average aluminium price of 2,654
USD/t as well as higher premium income contributed significantly to the
favourable revenue trend. Overall, the AMAG Group's revenue posted a marked
quarter-on-quarter increase of 57 % to reach EUR 328.8 million (Q3/2020: EUR
209.3 million).
EBITDA of EUR 53.0 million reflects the pleasing performance by the Metal
Division, as well as the positive demand trend for recycled cast alloys and
aluminium rolled products (Q3/2020: EUR 20.4 million). In particular, high
aluminium price and premium levels accompanied by still relatively low primary
material costs at the site in Canada had a positive effect on EBITDA in Q3/2021.
Rising input costs, especially in the Casting and Rolling divisions, are having
an increasing impact on the earnings trend.
After taking into account depreciation and amortisation of EUR 21.0 million (Q3/
2020: EUR 20.3 million), the AMAG Group reported significant growth in EBIT to
EUR 32.0 million in the past quarter, compared with EUR 0.1 million in the third
quarter of the previous year. Net income after taxes in the current reporting
quarter reflects a very positive Q3/2021 at EUR 22.1 million (Q3/2020: EUR -1.3
million).
Outlook for 2021:
The current market environment is characterised by high demand for aluminium
across all sectors. Rising demand for aluminium is expected to continue beyond
2021, according to the Commodity Research Unit (CRU).
Currently, the Metal Division is benefiting from a historically very high
aluminium price, the further development of which is characterized by
uncertainties. The production costs relevant to the AMAG Group reflect price
increases, some of which are sharp, especially those relating to energy,
logistics and key primary materials. In addition to the rising costs, AMAG
Group's business development is increasingly impacted by labour availability.
Based on an improved forecast in the Metal Division as a consequence of the
higher aluminium price, the AMAG Management Board anticipates EBITDA in a range
between EUR 175 and EUR 195 million for the full 2021 financial year.
AMAG - key figures:
______________________________________________________________________________
|EUR | Q3/2021| Q3/2020| Change|Q1-Q3/2021| Q1-Q3/2020| Change |
|million___|__________|__________|__________|__________|___________|___________|
|Shipments | 111,700| 100,700| +10.9 %| 337,800| 303,900| +11.2 %|
|in_tonnes_|__________|__________|__________|__________|___________|___________|
|of which | | | | | | |
|external | 103,100| 94,200| +9.4 %| 317,600| 282,300| +12.5 %|
|shipments | | | | | | |
|in_tonnes_|__________|__________|__________|__________|___________|___________|
|Revenue___|_____328.8|_____209.3|___+57.0_%|_____923.8|______673.2|____+37.2_%|
|EBITDA____|______53.0|______20.4|__+159.3_%|_____146.5|_______79.8|____+83.7_%|
|EBIT______|______32.0|_______0.1|__>1,000_%|______83.9|_______17.7|___+372.5_%|
|Net income| | | | | | |
|after | 22.1| -1.3| >1,000 %| 57.0| 11.1| +413.7 %|
|taxes_____|__________|__________|__________|__________|___________|___________|
|Cash flow | | | | | | |
|from | 18.0| 31.7| -43.4 %| 68.1| 102.3| -33.4 %|
|operating | | | | | | |
|activities|__________|__________|__________|__________|___________|___________|
|Cash flow | | | | | | |
|from | -17.9| -15.0| -19.8 %| -43.7| -39.7| -10.0 %|
|investing | | | | | | |
|activities|__________|__________|__________|__________|___________|___________|
|Employees | 2,175| 1,947| +11.7 %| 2,143| 1,969| +8.9 %|
|1)________|__________|__________|__________|__________|___________|___________|
______________________________________________________________________________
|EUR_million_|___September_30,_2021|_December_31,_2020_2)|_______________Change|
|Equity______|________________599.4|________________602.7|_______________-0.6_%|
|Equity_ratio|_______________38.2_%|_______________38.9_%|_____________________|
|Gearing_____|_______________50.0_%|_______________52.2_%|_____________________|
1) Average number of employees (full-time equivalents), including temporary
staff and excluding apprentices. Includes personnel from the Alouette smelter
(20 %) and Aircraft Philipp.
2) Includes an adjustment due to a correction in accordance with IAS 8.41
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 safeguarding an
exemplary net ecological impact. In addition, AMAG holds a 70 % interest in the
German company Aircraft Philipp based in Übersee am Chiemsee, an established
manufacturer of ready-to-install metal parts for the aircraft industry.
Further inquiry note:
Investor contact:
Christoph M. Gabriel, BSc
Head of Investor Relations
AMAG Austria Metall AG
Lamprechtshausener Strasse 61
5282 Ranshofen, Austria
Tel.: +43 (0) 7722-801-3821
e-mail: investorrelations@amag.at
Press contact:
Leopold Pöcksteiner
Head of Corporate Communications
AMAG Austria Metall AG
Lamprechtshausener Strasse 61
5282 Ranshofen, Austria
Tel.: +43 (0) 7722-801-2205
e-mail: publicrelations@amag.at
end of announcement euro adhoc
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issuer: AMAG Austria Metall AG
Lamprechtshausener Straße 61
A-5282 Ranshofen
phone: +43 7722 801 0
FAX: +43 7722 809 498
mail: investorrelations@amag.at
WWW: www.amag-al4u.com
ISIN: AT00000AMAG3
indexes: ATX BI, VÖNIX, WBI, ATX GP
stockmarkets: Wien
language: English