AMAG Austria Metall AG, a leading Austrian supplier of primary aluminium, premium cast, and rolled aluminium products, announced its financial results for the first half of 2024 ended June 30, whereby it said the challenging environment in terms of demand for aluminium rolled products continued in the second quarter resulted in weaker revenue and net income.
Although the increased aluminium prices in the June quarter cushioned worldwide subdued demand for aluminium rolled products, AMAG's revenue stood less in H1 2024 at EUR 707.7 million versus EUR 796.4 million in H1 2023.
AMAG's net income after taxes was EUR 33.4 million in H1 2024, down 34.51 per cent Y-o-Y from EUR 51 million. EBITDA was also below the H1 2023 level, standing at EUR 95.3 million, but better than the second half of 2023.
However, the cash flow from operating activities grew to EUR 75.7 million from EUR 68 million a year ago.
The bearish financial outcome of AMAG Austria could be attributed to distressed demand for aluminium rolled products in certain industries, particularly in Europe. However, the company yielded some benefits from its diverse product range and rising aluminium price in Q2 2024. In the casting division, shipments of recycled cast alloys remained good in a difficult environment in the automotive sector.
Dr Helmut Kaufmann, CEO of AMAG Austria Metall AG, said: "With EBITDA of around EUR 95 million, we are at a satisfactory level despite the challenging market situation. Our strategic investment in the smelter in Canada also proved its worth once again, strengthening the AMAG Group's earnings. In Ranshofen, we were able to further expand our shipment volumes in the aviation industry, among others. In the automotive industry, our broad customer base is helping us in an environment characterised by uncertainty. For the full year, we expect a strong operating profit (EBITDA) of EUR 160 million to EUR 180 million."
Outlook for 2024
In the first two quarters, AMAG generated solid earnings amid a challenging environment. The company expects further improvement in the remaining two quarters, supported by anticipated European economic development.
Dr Helmut Kaufmann said, "The current economic environment in Europe is primarily dampening the short-term growth prospects for aluminium rolled products in certain AMAG sales markets. Almost unaffected by this, demand for aluminium products is expected to rise steadily in the medium to long term according to the CRU (Commodity Research Unit). We will continue to utilise our strengths to follow this growth trend. In any case, the operating performance is strong and enabled the EBITDA floor to be raised to EUR 160 million for 2024."
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