EANS-Adhoc: AMAG Austria Metall AG reports half-year figures for 2011 Strong growth, earnings on record level again
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6-month report
29.07.2011
Sales rise 21% to EUR 429.2 million as compared with the first half-year of
2010
EBIT outperforms the record result of the first half-year of 2010 by 18% and
reaches EUR 59.5 million in the comparable period of this year
Cash flow from operating activities rises by 36% to EUR 55.8 million
Continued extension of capacities at Ranshofen
in EUR million H1 2011 H1 2010 Change
Sales 429.2 354.8 +21%
EBITDA 81.9 72.9 +12%
EBIT 59.5 50.3 +18%
Net income after taxes 48.1 37.3 +29%
Earnings per share in EUR 1.36 - -
Cash flow from
operating activities 55.8 41.1 +36%
Working capital employed 246.0 195.2 +26%
Equity 475.9 497.0 (4%)
Employees 1,213 1,169 +4%
Developments in the first half-year of 2011
In the first six months of the year under review, AMAG Austria Metall AG (AMAG)
clearly outperformed the results of the comparable period of the prior year. Due
to the good shipment volume in the area of special products, sales rose by 21%
to EUR 429.2 million. Earnings before interest, taxes, depreciation and
amortisation (EBITDA) increased by 12% to EUR 81.9 million and achieved a new
record level in the comparable period. EBIT even grew by 18% to EUR 59.5
million. An over-proportional increase was registered in the surplus for the
period. Earnings after taxes for the first half-year of 2011 are EUR 48.1
million, or 29% above the result achieved in the comparable period.
Due to the strong demand for aluminium, the production facilities are working at
full capacity. Therefore, the Supervisory Board approved a tranche in the amount
of EUR 21 million as a further part of the EUR 75 million investment programme
aimed at boosting capacity by 20%. These funds will be used to build a new
melting and casting furnace in the casthouse as well as to expand the capacity
of the existing rolling slab caster. The focus will be on processing coated
scraps in an environmentally friendly manner in order to produce high-quality
aluminium alloys. In doing so, utmost attention will be paid to optimizing
energy use. In the rolling mill, a new shear line for fabricating aluminium
sheets is to be installed, with high cutting power and more precise cuts, so as
to comply with tightest process tolerances.
Metal Division
In the first half of 2011, sales in the Metal Division rose 22% from EUR 247.2
million in 2010, attaining EUR 301.2 million. One of the main reasons for this
boost was the increase in the price of aluminium. In the same period, the
average price per ton was at USD 2,576 as compared with USD 2,163 in the same
period of the prior year. After being continuously on the rise since 2009, the
price of aluminium in the first half-year of 2011 is beginning to show a
sideways movement. EBITDA rose from EUR 9.7 million to EUR 24.8 million as
compared with the first quarter of 2011 (+155%). A comparison of half-year
figures shows EBITDA to have gone down 24%, from EUR 45.7 million in the same
period of the prior year to EUR 34.5 million in this half-year. The major
contributing factors were, in particular, the positive effects from the
valuation of hedging instruments (options) contained in the comparable period in
2010. The higher cost of raw materials as well as effects from currency
translation had a negative effect, while the higher aluminium price had a
positive effect.
Casting Division
The Casting Division's sales rose by 27% to EUR 68.4 million in the first
half-year, and EBITDA even increased by 75%, to EUR 4.7 million. In addition to
a shift in the product mix to higher-priced products, the improvement in price
levels taking place in the first half-year of 2011 also contributed to this
trend. The business trend in this Division is essentially driven by the
development of the automotive industry. For AMAG, passenger car production in
Germany, which was expanded by 5% in the reporting period, is of particular
relevance.
Rolling Division
The Rolling Division improved its sales by 24% in the first half-year of 2011.
It thus earned EUR 297.4 million after generating EUR 240.5 million in the same
period of the prior year. In Europe, demand from the mechanical engineering
sector and from the automotive industry was a material driver of this
development. In the US, demand from the mechanical engineering and transport
sectors continued to be satisfactory, as was demand from the aircraft industry.
The Rolling Division's EBITDA increased by 78% in the reporting period, to EUR
41.0 million. The reasons behind this trend are higher sales volumes, a higher
price level as well as a shift in the product mix towards higher-value products.
Outlook
For 2011, consumption of primary aluminium is forecast to grow by 9-12% overall.
According to a current study of the English CRU institute, the consumption of
rolled aluminium products is expected to see a global annual growth rate of
+7.6% until 2013. For that period, the expected annual growth rate for Western
Europe is 3.3%, while demand is expected to grow +6.6% in eastern Europe and
+10.9% in Asia. In a breakdown by sectors, growth perspectives are encouraging
in the sectors of transport (+10%), construction and mechanical engineering
(+8%) as well as in the European aircraft industry (+9%). Against this backdrop,
and based on the satisfactory order situation, the AMAG Management expect the
positive business development to continue for the rest of the year. However, a
slight reduction in quantities shipped is to be expected for the second
half-year as compared with the first six months of 2011. This is due to
maintenance work scheduled at the Ranshofen location.
Summing up it can be said that AMAG's Management, from today's perspective,
expect that profitability in 2011 will exceed the record values achieved in the
prior year.
About AMAG Group
AMAG is a leading Austrian manufacturer of primary aluminium and high-quality
aluminium cast and flat rolled products for various different industries such as
the aircraft, automotive, sports equipment, lighting, mechanical engineering,
construction and packaging industries. With 1,175 employees, the company
achieved sales of EUR 728 million and EBITDA of EUR 139 million in the 2010
fiscal year.
Cautionary statements
The forecasts, plans and forward-looking assessments and statements contained in
this report are based on the information currently available to us. Should the
assumptions on which the forecasts have been based fail to occur, the targets
not be met or risks materialize, then the actual results may deviate from the
results currently anticipated. We undertake no obligation to update publicly any
such forecasts in light of new information or future events. We have exercised
the utmost diligence in preparing this report and have checked the data
contained therein. However, rounding, transmission and printing errors cannot be
ruled out. This report is also available in German. In case of doubt, the German
version prevails.
Further inquiry note:
Leopold Pöcksteiner
Leitung Strategie, Kommunikation, IR
AMAG
Lamprechtshausnerstraße 61
5282 Ranshofen, Austria
Tel.: +43 (0) 7722-801-2205
Email: Leopold.Poecksteiner@amag.at
Website: www.amag.at
end of announcement euro adhoc
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issuer: AMAG Austria Metall AG
Lamprechtshausnerstraße 61
A-5282 Ranshofen
phone: +43 7722 801 0
FAX: +43 7722 809 498
mail: investorrelations@amag.at
WWW: www.amag.at
sector: Metal Goods & Engineering
ISIN: AT00000AMAG3
indexes: Prime Market
stockmarkets: official dealing: Wien
language: English
Original content of: AMAG Austria Metall AG, transmitted by news aktuell