EQS-News: AMAG Austria Metall AG: Good earnings in the 2024 financial year in a challenging environment

EQS-News: AMAG Austria Metall AG / Key word(s): Annual Results
AMAG Austria Metall AG: Good earnings in the 2024 financial year in a
challenging environment

20.02.2025 / 07:15 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Ranshofen, 20 February 2025 

AMAG Austria Metall AG: Good earnings in the 2024 financial year in a
challenging environment 

• Consistent execution of the AMAG strategy and tailwind from the
Canadian aluminium smelter enabled a good revenue and earnings
performance in a persistently difficult environment in Europe
• Revenues of EUR 1,448.8 million approximately at the previous year’s
level (2023: EUR 1,459.2 million)
• EBITDA of EUR 179.2 million at the upper end of the communicated
EBITDA range (2023: EUR 188.4 million)
• Net income after taxes at EUR 43.2 million despite impairment
losses (2023: EUR 66.4 million)
• Strong cash flow from operating activities of EUR 119.0 million (2023:
EUR 180.9 million)
• Proposed dividend of EUR 1.20 per share
• Outlook 2025: Earnings forecast in the form of an EBITDA range
premature due to uncertain market and economic developments

AMAG Austria Metall AG can look back on a successful financial year in a
persistently challenging market environment, thanks to its diverse set-up
and high adaptability. In addition to successfully implementing shifts in
the product mix, market weaknesses, especially in Europe, were noticeably
cushioned by volume increases in the USA and Asia. The basis for this was
the consistently good operating performance in all divisions of the AMAG
Group, which enabled EBITDA at the upper end of the communicated range.

Dr. Helmut Kaufmann, Chief Executive Officer of AMAG: „The earnings we
have achieved are the result of a solid business positioning as well as
the outstanding work of our experienced team and sustainable cost
management. We were able to roughly maintain the sales level of the
previous year and set shipment records for aerospace and automotive
products.“

At EUR 1,448.8 million, revenues were roughly on a par with the previous
year (EUR 1,459.2 million). Shifts in the product mix and a higher average
aluminium price (3-month LME) of 2,457 USD/t (+8%) largely compensated for
the overall lower price and premium level. At 425,000 tonnes, total
shipments remained at roughly the same level as the previous year
(425,800 tonnes) in a persistently challenging market environment.

Earnings before interest, taxes, depreciation and amortisation (EBITDA)
amounted to EUR 179.2 million (2023: EUR 188.4 million). The Metal
Division once again provided a tailwind. The main reasons for this were
the continued stable production in the Canadian smelter, the increased
aluminium price and lower average raw material costs, although the
significant rise in the alumina price had an increasingly negative impact
in the second half of 2024. In the past financial year, the Casting
Division almost matched the previous year’s very good shipment volumes in
an environment characterised by challenges in the automotive industry. The
division’s stable operating performance enabled a good earnings
performance despite increased price pressure and higher structural costs.
In the Rolling Division, the company’s diverse set-up and high degree of
flexibility allowed it to implement shifts in its product mix and
compensate for declines in demand from certain European markets with
increased shipments to the US and Asia.

At EUR 102.1 million, depreciation and amortisation was above the previous
year’s level (2023: EUR 86.0 million) as a result of the impairment losses
recognised at AMAG components. This resulted in an operating profit (EBIT)
of EUR 77.1 million (2023: EUR 102.4 million). Net income after taxes
totalled EUR 43.2 million in the 2024 financial year (2023:
EUR 66.4 million).

The cash flow from operating activities of EUR 119.0 million
(2023: EUR 180.9 million) reflects the solid operating profit. Successful
inventory optimisation measures had a positive effect on working capital,
while reporting date-related effects and a higher aluminium price had the
opposite effect. Investment cash flow totalled EUR 87.2 million in the
2024 financial year, compared to EUR 93.8 million in the previous year.
This resulted in a free cash flow of EUR 31.8 million (2023:
EUR 87.1 million).

The AMAG Group’s key balance sheet figures reflect a stable financial
position. Equity stood at EUR 740.9 million as at the balance sheet date
(31 December 2023: EUR 746.3 million), while the equity ratio was 42.3%
(31 December 2023: 46.1%).

Net financial debt increased from EUR 364.3 million at the end of 2023
to EUR 382.3 million at the end of 2024. The gearing ratio was 51.6% at
the end of the current reporting year (31 December 2023: 48.8%).

Dividend proposal:

The Management Board and Supervisory Board will propose a dividend
of EUR 1.20 per share to the Annual General Meeting. This corresponds to a
dividend yield of around 5.0%, based on the year-end closing price of the
AMAG share of EUR 24.00. The Annual General Meeting will take place on 15
April 2025. The dividend payment date is 23 April 2025.

Outlook 2025:

The economic outlook for 2025 continues to show subdued GDP growth,
especially for Europe (+1.0%) and particularly for the important
industrialised nation of Germany (+0.3%).[1][1] In addition, there is
increased uncertainty as a result of trade policy measures, especially due
to the change of presidency in the USA and the associated tariff
regulations. The demand for aluminium rolled products is expected to
develop positively in 2025, with an anticipated increase of +4.5%. The
Commodity Research Unit (CRU)[2][2] anticipates a significant increase in
demand across sectors and countries. The AMAG Group will continue to
utilise its broad positioning and respond flexibly to customer
requirements.

Dr. Helmut Kaufmann, Chief Executive Officer of AMAG: „AMAG is in a
rock-solid position both operationally and financially. We will continue
to apply our expertise in the field of aluminium in a solution- and
customer-oriented manner and are confident about the 2025 financial year
despite the many uncertainties.“

From today’s perspective, business developments in the AMAG Group’s three
operating divisions are estimated as follows:

Business performance in the Metal Division is largely dependent on the
aluminium price and raw material costs. If production volumes remain high
in 2025, the significantly higher alumina costs will have a negative
impact on earnings in any case. The Casting Division is especially
dependent on trends in the European automotive industry. With a weak
outlook for shipments of passenger cars in Europe[3][3], a high degree of
flexibility in operational processing, CO[2]-optimised alloys and
efficient production processes will strengthen the division. In the
Rolling Division, the focus remains on the broad set-up in terms of
products, regions, industries and customers. The high degree of
adaptability in operational processes remains an essential basis for
success, especially in a volatile market environment.

The current uncertain environment does not allow for an earnings forecast
in the form of an EBITDA range for the 2025 financial year. From today’s
perspective, however, it can be assumed that operating profit will very
likely be below the 2024 level for the reasons mentioned above.

Annual Report 2024:

The 2024 Annual Report is now available on the AMAG website under
„Investor Relations“. It consists of the comprehensive Annual Financial
Report, including the non-financial statement, and a magazine summarising
the most important information on business performance in 2024.

AMAG key figures: 

  2024 2023 Change in %
Shipments in tonnes 425,000 425,800 -0.2
of which: external shipments in tonnes 390,600 395,400 -1.2
Revenues in EUR million 1,448.8 1,459.2 -0.7
EBITDA in EUR million 179.2 188.4 -4.9
EBIT in EUR million 77.1 102.4 -24.7
Net income after taxes in EUR million 43.2 66.4 -34.9
Cash flow from operating activities
in EUR million 119.0 180.9 -34.2
Cash flow from investing activities
in EUR million -87.2 -93.8 7.1
Employees in FTE^1) 2,237 2,231 0.3

 

  31 December 2024 31 December 2023 Change in %
Equity in EUR million 740.9 746.3 -0.7
Equity ratio in % 42.3 46.1 –
Gearing in % 51.6 48.8 –

[1) Average number of employees (full time equivalents) including contract
workers, excluding apprentices and since July 2024 also excluding holiday
interns (adjustment also made retrospectively for 2023). Includes the
personnel from the Alouette smelter (20 %) and AMAG components.]

 

About the AMAG Group

AMAG is a leading Austrian premium supplier of high-quality aluminium cast
and rolled products, which are used in a wide range of industries, such as
the aircraft, automotive, sporting goods, lighting, mechanical
engineering, construction and packaging industries. The Canadian Alouette
smelter, in which AMAG holds a 20% stake, produces high-quality primary
aluminium with an exemplary environmental footprint. AMAG components,
based in Übersee am Chiemsee (Germany), also manufactures ready-to-install
metal parts for the aerospace industry.

 

Investor contact Press contact
Mag. Christoph M. Gabriel, BSc MMag. Alexandra Hanischläger, MBA
Head of Investor Relations Head of Communication and Marketing
AMAG Austria Metall AG AMAG Austria Metall AG
Lamprechtshausener Straße 61 Lamprechtshausener Straße 61
5282 Ranshofen, Austria 5282 Ranshofen, Austria
Phone: +43 (0) 7722-801-3821 Phone: +43 (0) 7722-801-2673
Email: investorrelations@amag.at Email: publicrelations@amag.at
   
Website: www.amag-al4u.com  

 

NOTE

The forecasts, plans and forward-looking assessments and statements
contained in this publication were made on the basis of all information
available to AMAG up to 05 February 2025. If the assumptions on which the
forecasts are based do not materialise, targets are not achieved or risks
occur, actual earnings may differ from those currently anticipated. We
assume no obligation to revise such forecasts in light of new information
or future events.

This publication has been prepared and the data checked with the greatest
possible care. However, rounding, transmission or printing errors cannot
be ruled out. In general, deviations in the values, totals and percentages
shown may occur due to rounding. In particular, AMAG and its
representatives accept no liability for the completeness and accuracy of
the information contained in this publication. This publication is also
available in German; in cases of doubt, the German-language version shall
prevail.

This publication does not constitute a recommendation or invitation to buy
or sell securities of AMAG.  

[4]^[1] IMF, World Economic Outlook, January 2025

[5]^[2] CRU, Aluminium Rolled Products Market Outlook, November 2024

[6]^[3] VDA, press release „VDA Annual Press Conference 2025“, January
2025

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20.02.2025 CET/CEST This Corporate News was distributed by EQS Group.
www.eqs.com

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Language: English
Company: AMAG Austria Metall AG
Lamprechtshausener Straße 61
5282 Ranshofen
Austria
Phone: +43 7722 801 0
Fax: +43 7722 809 498
E-mail: 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: 2088669

 
End of News EQS News Service

2088669  20.02.2025 CET/CEST

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