AMAG Austria Metall AG released its 2018 financial year results, showing new records in shipments and revenue supported by growing demand for aluminium products and company’s ramping-up of its new plants in Ranshofen.
The AMAG’s total shipments increased to a record of 424,600 tonnes last year compared to 421,700 tonnes in 2017. Higher shipments volumes and the higher than usual aluminium price in 2018 pushed AMAG’s revenues to record levels – up 6 per cent to EUR 1,101.6 million compared to EUR 1,036.2 million in 2017.
Helmut Wieser, outgoing CEO of AMAG commented: “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.”
The company cited external market conditions as the main factors affecting its earnings. The company’s EBITDA was negatively affected by the introduction of additional US import tariffs on European aluminium in the middle of the last year, higher raw materials costs due to the production cuts at the world’s largest alumina refinery in Brazil, and the US sanctions on Russia’s Rusal – the leading alumina and primary aluminium producer outside China. AMAG generated net income after taxes of EUR 44.5 million in the 2018 financial year compared to EUR 63.2 million in 2017.
AMAG avoided forecasting its future earnings, referring to the tendency of high price fluctuations in the raw materials markets and rising economic uncertainties due to the planned UK’s exit from the EU and weaker EU car sales. Nonetheless, the company quoted as a factor CRU’s optimistic prediction of promising global demand growth in both primary aluminium products and aluminium rolled products.
Gerald Mayer, incoming Chief Executive Officer of AMAG added: “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.”
AMAG is a major supplier of aluminium cast and flat rolled products for the aircraft, automotive, sports equipment, lighting, mechanical engineering, construction and packaging industries. The company employed 1,880 people in 2017 and holds a 20 per cent interest in the Canadian smelter Alouette which produces primary aluminium.