Amag, H1 2021: Earnings at record high

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Amag Austria Metall AG in Ranshofen reports earnings at a record high for the first half of the year.

Earnings before interest, tax, depreciation and amortization (Ebitda) rose by 58 % to a record level of around €94m year-on-year. Net income after taxes of €35m almost tripled.

The company continued to benefit from the positive market environment after a solid start to the first quarter of 2021. Attractive aluminium prices and premiums, in particular, are providing a noticeable tailwind in the Metal division. Demand for aluminium rolled products and recycled cast alloys developed positively. As expected, demand from the aircraft industry was low in the reporting period.

Record earnings: “The best half-year result in Amag’s history”

Gerald Mayer, CEO of Amag, says: “We were well equipped for the rapid market recovery, which enabled us to take advantage of the positive economic environment. Due to the attractive price situation in the Metal division and a gratifying trend in shipments at the Ranshofen site, we not only exceeded the pre-crisis level, but even achieved the best half-year result in Amag’s history.”

Revenue reflects a positive trend in the aluminium price as well as in shipment volumes. The LME 3-month aluminium price averaged USD2,256/t in the period under review, up from USD 1,622/t in the first half of 2020. Shipment volumes rose 11 % to 226,100 t. Overall, the Amag Group achieved an increase in revenue by 28 % to EUR 595m in the first half of 2021.

Ebitda rose 28 % to approx. €94m. In addition to a stable production in all Amag divisions, attractive aluminium prices and low raw material costs in the primary aluminium segment were crucial factors in this context. The good performance in terms of new order intake of aluminium rolled products and recycled cast alloys also had a positive impact..

Positive outlook for 2021

The overall positive market environment provides grounds for optimism. The price situation in the primary metal sector is attractive and the order book position at the Ranshofen site is gratifying. The current forecasts from CRU point to a positive outlook for aluminium demand across all sectors. Both, primary aluminium and aluminium rolled products are expected to expand by around 9 % in 2021.

“In view of the current situation we are looking to the second half of the year with optimism. Thanks to the stable smelter operations in Canada, we are benefiting from the positive market environment in the primary aluminium sector. The order book position at the Ranshofen site has reached an all-time high in the last few weeks and leads us to expect a high level of shipments over the coming months,” says Mayer.

In order to ensure continued growth, the company is currently seeking to hire around 50 employees.

The management board expects an Ebitda of €155-175m for the full 2021 business year, compared with €108m in 2020.

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