The biggest company in the Austrian aluminium industry sector, AMAG Austria Metall AG demonstrated remarkable business performance in 2023, despite a challenging economic climate. The company achieved a revenue of EUR 1,459.2 million, accompanied by an impressive EBITDA of EUR 188.4 million, marking the second-highest level in its history. Net income after taxes stood at a solid EUR 66.4 million, while cash flow from operating activities experienced a substantial surge, soaring by 110% to EUR 180.9 million.
The key factors for AMAG's performance
AMAG's diverse portfolio proved instrumental in navigating economic hardships and attaining exceptional outcomes. The firm's emphasis on innovation, sustainability, and premium aluminium offerings struck a chord with both customers and stakeholders, contributing significantly to its success.
Dr Helmut Kaufmann, CEO of AMAG, stated, “AMAG’s stability and flexibility once again proved their worth in the 2023 financial year. With an EBITDA of EUR 188 million, we achieved the second-highest operating result in the company’s history. We successfully implemented the working capital optimisations we had announced, significantly contributing 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 budget with the construction of a surface treatment centre.”
AMAG Group's robust business growth and outlook
During the 2023 fiscal year, AMAG experienced robust business expansion thanks to its comprehensive setup encompassing casting, rolling, and recycling operations. Its prominent presence in the aerospace, automotive, and consumer electronics industries played a pivotal role in driving this success amid escalating demand for aluminium goods.
Looking forward, AMAG Group anticipates leveraging the ongoing surge in demand for aluminium products to its advantage. The company is strategically positioned for sustained growth and enduring prosperity through its dedication to minimising carbon emissions and embracing innovative technologies.
Dr Helmut Kaufmann, the CEO of AMAG, commented, “The medium and long-term CRU forecasts for the development of demand for aluminium products are promising. As a premium provider of speciality products, we will continue offering innovative product solutions for our customers and benefit from the rising demand trend. We continue to focus on stability in our business model, flexibility in processing and diversity in our portfolio.”
AMAG's increased market capitalisation
Furthermore, the market capitalisation of AMAG demonstrated a notable upsurge compared to the prior year, reinforcing its stature as a pivotal figure in the worldwide aluminium sector.
As AMAG Austria Metall AG persists in its progression, its resilience and commitment to pioneering advancements stand as a poignant testament that triumph remains within reach for those unwavering in their quest for distinction amidst adversity.
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 is interested. Consequently, earnings performance will be determined by price trends, particularly for aluminium and raw materials (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. From today's perspective, further volume growth in the transportation sector can be expected. 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.
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