Gerald Mayer, CEO of AMAG Austria Metall AG, comments: “All our operating companies exploited the opportunities in the first half of 2023 optimally. In Canada, we continued to benefit from stable production levels. From our fully integrated site in Ranshofen, shipment volumes to the aircraft, automotive and packaging industries recorded further growth. The ongoing economic downturn is evident in the reduction in new order intake, especially in the areas of industrial applications, sports and architecture.”

AMAG Group generated revenue of EUR 796.4 million in the first half of 2023 (H1/2022: EUR 904.3 million). This was due particularly to the 23.6 % lower aluminum price and lower shipment volumes of 221,200 tonnes (H1/2022: 225,100 tonnes).

At EUR 117.8 million, the second highest half-year earnings in AMAG’s history were achieved, following record EBITDA (earnings before interest, taxes, depreciation and amortisation) in the previous year (H1/2022: EUR 156.5 million), despite lower shipment volumes. The Metal Division benefited from continued stable production in Canada. However, the significant drop in the aluminium price and a higher alumina price level in relation to the aluminium price had a negative effect on earnings. A high degree of flexibility enabled the Casting and Rolling divisions to leverage the challenging market environment to optimum effect.

Depreciation and amortisation amounted to EUR -42.4 million in the first six months of the reporting year (H1/2022: EUR -43.7 million). The operating profit (EBIT) of EUR 75.4 million reflects an overall successful first half of 2023 (H1/2022: EUR 112.8 million).

Net income after taxes amounted to EUR 51.0 million in the reporting period, compared with EUR 78.4 million in the first half of 2022.

Cash flow from operating activities increased significantly to EUR 68.0 million (H1/2022: EUR -84.1 million). In particular, the high operating result (EBITDA) in the first half of 2023 is responsible for this. In the previous year, the main negative factors were the higher aluminium price and the accumulation of reserve stocks. Cash flow from investing activities amounted to EUR -50.6 million in the first six months of the reporting year, as budgeted (H1/2022: EUR -29.7 million). This results in free cash flow of EUR 17.4 million, compared to EUR -113.9 million in the previous year.

Net financial debt stood at EUR 432.6 million as of June 30, 2023, compared with EUR 393.3 million as of the end of the 2022 financial year. AMAG Group’s equity grew to EUR 742.5 million as of June 30, 2023 (December 31, 2022: EUR 710.3 million). The equity ratio stood at 41.7 % as of the end of June 2023 (December 31, 2022: 39.6 %).

Outlook for 2023:

Following a record half-year result in the previous year, AMAG Group generated its second highest half-year earnings to date within a generally worsening market environment. In this context, demand from various industries has been increasingly subdued, especially since the second quarter of 2023. According to CRU forecasts for 2023, global demand for primary aluminum and aluminum rolled products will continue to expand, although China will be the main growth driver. For Europe, the CRU expects demand to diminish by -4.8 % for primary aluminum and by -2.0 % for aluminum rolled products.

The further course of business in 2023 will depend especially on general economic and aluminium price trends. Monetary policy measures and the associated inflation trend are also playing a role. Uncertainties arising from geopolitical conflicts (especially the Ukraine conflict and trade disputes between China and the USA) can rapidly lead to changes in the market environment. Despite the significant easing on markets, supplies of energy and raw materials remain a significant factor of uncertainty.

From today’s perspective and based on current price assumptions, the AMAG Management Board expects the Metal Division’s earnings to remain stable. Especially in the Rolling Division – based on current market estimates – business is expected to be significantly below the level of the first half of 2023.

Assuming that there is no unexpected significant deterioration in the economic situation, and that energy supplies and aluminium prices remain stable, the AMAG Management Board currently anticipates EBITDA in a range between EUR 160 million and EUR 190 million for the 2023 financial year.