EQS-News: AMAG Austria Metall AG / Key word(s): Annual Results
AMAG Austria Metall AG: Unique set-up enabled good business performance
in 2023
15.02.2024 / 07:15 CET/CEST
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Ranshofen, February 15, 2024
AMAG Austria Metall AG: Unique set-up enabled good business performance
in 2023
• Rapid response to changes in the market and stable operating
performance ensured a successful financial year for AMAG Group
• Revenue of EUR 1,459.2 million after a record previous year
(EUR 1,726.7 million)
• EBITDA at EUR 188.4 million is the second-highest level in the
company’s history (2022: EUR 247.1 million)
• Solid net income after taxes of EUR 66.4 million (2022:
EUR 109.3 million)
• Significant increase in cash flow from operating activities of 110 %
up to EUR 180.9 million (2022: EUR 86.1 million)
• Proposed dividend of EUR 1.50 per share
• Outlook 2024: Earnings forecast in the form of an EBITDA range
premature due to uncertain market and economic development
Due to its broad set-up, AMAG Austria Metall AG very successfully
countered the generally subdued economic environment and reported a good
earnings trend in all operating segments. Smelter operations at the
production site in Canada remained stable at full capacity. At the
headquarters in Ranshofen, diversity in terms of products and sectors was
leveraged to optimal extent and the company responded flexibly to changes
in demand.
Dr. Helmut Kaufmann, CEO of AMAG, comments: “AMAG’s stability and
flexibility once again proved their worth in the 2023 financial year. With
EBITDA of EUR 188 million, we achieved the second-highest operating result
in the company’s history. We successfully implemented the working capital
optimisations that we had announced, and these made a significant
contribution to our record cash flow of EUR 181 million. In the 2023
financial year, we also succeeded in implementing our largest capex
project of recent years on time and on budget with the construction of a
surface treatment centre.”
Revenue amounted to EUR 1,459.2 million compared with EUR 1,726.7 million
in the previous year due to the lower shipment volume as well as the lower
aluminium price and premium level. The average 3-month aluminium price was
down by 16 % from 2,713 USD/t in the previous year to 2,285 USD/t in the
2023 financial year. At 425,800 tonnes, total shipments were below the
previous year’s level (442,000 tonnes) due to the market-led reduction in
demand.
At EUR 188.4 million, earnings before interest, taxes, depreciation and
amortisation (EBITDA) represent AMAG’s second-highest operating result
(2022: EUR 247.1 million). The Metal Division continued to benefit from
full capacity utilisation at the Canadian smelter. The overall
significantly lower aluminium price and premium level combined with higher
raw material costs (in relation to the aluminium price) had a negative
impact on earnings. At the Ranshofen site, the Casting Division very
successfully leveraged the stable market environment in the automotive
industry and achieved slight year-on-year growth in shipment volumes. In
the Rolling Division, the significant reduction in demand for industrial
applications, sports and architectural products was offset to a
considerable extent by marked growth in the transportation sector. AMAG
Group recorded an EBITDA margin of 12.9 % (2022: 14.3 %).
After taking into consideration depreciation and amortisation of
EUR 86.0 million (2022: EUR 87.5 million), an operating result (EBIT) of
EUR 102.4 million was achieved (2022: EUR 159.7 million). At
EUR 66.4 million, net income after taxes reflects the solid business
performance in 2023 (2022: EUR 109.3 million).
Cash flow from operating activities increased significantly by 110 % to
EUR 180.9 million (2022: EUR 86.1 million), particularly reflecting
working capital optimisation and the lower aluminium price level. The
solid earnings also exerted a positive impact on the cash flow trend.
Capital expenditure amounted to a total of EUR 93.8 million in the 2023
financial year, compared with EUR 74.9 million in the previous year.
Consequently, free cash flow grew significantly to EUR 87.1 million (2022:
EUR 11.1 million).
AMAG Group’s key balance sheet figures reflect its continued stable
financial position. At EUR 746.3 million, equity recorded a further
increase compared with the previous year’s balance sheet date
(EUR 710.3 million). The equity ratio rose considerably to 46.1 % as of
December 31, 2023 (39.6 %). Net financial debt was reduced from
EUR 393.3 million at the end of 2022 to EUR 364.3 million at the end of
2023. Gearing decreased to 48.8 % as of the end of the year under review
(December 31, 2022: 55.4 %).
Proposed dividend:
The Management and Supervisory boards will propose a dividend of EUR 1.50
per share to the Annual General Meeting. This corresponds to a dividend
yield of around 5.6 % in relation to the AMAG share’s year-end closing
price of EUR 26.70. The Annual General Meeting will be held on April 11,
2024. The dividend payment date is April 18, 2024.
Outlook for 2024:
AMAG Group’s broad set-up enabled solid business growth during the 2023
financial year, despite the generally downbeat and partly recessionary
economic environment. Current forecasts(1)(1) assume that economic growth
will remain subdued in 2024. Consequently, the market environment is
expected to remain challenging during the 2024 financial year, although
different sectors of the economy will continue to be impacted to varying
degrees.
Dr. Helmut Kaufmann, CEO of AMAG, comments: “The medium and long-term CRU
forecasts for the development of demand for aluminium products are
promising. As a premium provider of specialty products, we will continue
to offer innovative product solutions for our customers and thereby
benefit from the rising demand trend. We are continuing to focus on
stability in our business model, flexibility in processing and diversity
in our portfolio.”
From today’s perspective, business trends in AMAG’s individual operating
divisions can be summarised as follows:
In the Metal Division, the high level of primary aluminium production is
expected to continue at the Canadian Alouette smelter in which the company
holds an interest. As a consequence, earnings performance will continue to
be determined by price trends, particularly for aluminium and raw
materials (and especially alumina and petroleum coke). The trend in the
automotive industry is particularly important for the Casting Division.
Demand for recycled cast alloys is currently expected to remain solid in
2024. Given continued high productivity, a good business trend for 2024 is
anticipated as a consequence. The Rolling Division’s broad portfolio
continues to be leveraged to respond flexibly to the market environment.
Further volume growth in the transportation sector can be expected from
today’s perspective. The extent to which demand for industrial
applications, sports and architectural products will recover will depend
on economic and interest rate trends, among other factors.
An earnings outlook in the form of an EBITDA range is premature at the
present time due to the uncertain market and economic development.
Annual Report 2023:
The 2023 annual report is available as of now for downloading from the
investor relations area of the AMAG website. This consists of the
comprehensive financial report including the non-financial statement as
well as a magazine summarising the most important information about the
business performance in 2023.
AMAG – key figures:
EUR millions 2023 2022 Change
Shipments in tonnes 425,800 442,000 -3.7 %
of which external shipments in tonnes 395,400 413,000 -4.3 %
Revenue 1,459.2 1,726.7 -15.5 %
EBITDA 188.4 247.1 -23.7 %
EBIT 102.4 159.7 -35.8 %
Net income after taxes 66.4 109.3 -39.2 %
Cash flow from operating activities 180.9 86.1 110.2 %
Cash flow from investing activities -93.8 -74.9 -25.1 %
Employees^1) 2,246 2,214 1.4 %
EUR millions December 31, 2023 December 31, 2022 Change
Equity 746.3 710.3 5.1 %
Equity ratio 46.1 % 39.6 % –
Gearing 48.8 % 55.4 % –
1) Average number of employees (full-time equivalents), including
temporary staff and excluding apprentices. Includes the 20 % personnel
share of the interest in the Alouette smelter, as well as the personnel of
AMAG components.
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 maintaining an exemplary net ecological impact. At AMAG components,
based in Übersee am Chiemsee (Germany), ready-to-install metal parts are
also manufactured for the aircraft industry.
Investor contact Press contact
Mag. Christoph M. Gabriel, BSc Dipl.-Ing. Leopold Pöcksteiner
Head of Investor Relations Head of Corporate Communications
AMAG Austria Metall AG AMAG Austria Metall AG
Lamprechtshausener Straße 61 Lamprechtshausener Straße 61
5282 Ranshofen, Austria 5282 Ranshofen, Austria
Tel.: +43 (0) 7722-801-3821 Tel.: +43 (0) 7722-801-2205
Email: investorrelations@amag.at Email: publicrelations@amag.at
Website: www.amag-al4u.com
Note
The forecasts, budgets, and forward-looking assessments and statements
contained in this publication were compiled on the basis of all
information available to AMAG as of January 31, 2024. In the event that
the assumptions underlying these forecasts prove to be incorrect, targets
be missed, or risks materialise, actual results may diverge from those
currently anticipated. We are not obligated to revise these forecasts in
the light of new information or future events.
This publication was prepared and the data it contains were verified with
the greatest possible care. Nevertheless, misprints, as well as rounding
and transmission errors cannot be ruled out entirely. In particular, AMAG
and its representatives do not assume any responsibility for the
completeness and correctness of information included in this publication.
This publication is also available in German. In cases of doubt, the
German-language version shall be authoritative.
This publication does not comprise either a recommendation or a
solicitation to either purchase or sell securities of AMAG.
(2)^(1) See, among others, WIFO, Economic Forecast 4/2023, December 2023,
and IMF, World Economic Outlook, January 2024
══════════════════════════════════════════════════════════════════════════
15.02.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
═════════════════════════════════════════ ═════════ ════════════════════════ Language: English Company: Amag Austria Metall AG Lamprechtshausener Straße 61 5282 Ranshofen Austria Phone: +43 7722 801 Fax: +43 7722 809 498 Email: investorrelations@amag.at
Internet: www.amag-al4u.com
ISIN: AT00000AMAG3
WKN: A1JFYU
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Munich, Stuttgart; Vienna Stock Exchange (Official Market)
EQS News ID: 1836605
End of News EQS News Service
1836605 15.02.2024 CET/CEST
References
Visible links
1. file:///appl/crsred1/tmp/HTML-FormatExternal-BlkXu3.html#_ftn1
2. file:///appl/crsred1/tmp/HTML-FormatExternal-BlkXu3.html#_ftnref1