AMAG Austria Metall AG has reported its latest financial results till September 30, 2023, highlighting stable earnings with revenue above EUR 1 billion, even amid global inflation and decelerating aluminium prices. Although the revenue during the first nine months of 2023 saw a drop of 15.6 per cent year-on-year, it managed to come in at EUR 1,142 million. The revenue in the third quarter was recorded at EUR 346.4 million compared to EUR 449.6 million in the previous year.
AMAG noted that aluminium demand from the aircraft sector was strong and that from the automotive industry was stable. But demand from the sports and architectural sector was muted, resulting in a fall in AMAG's shipments volume. From January to September 2023, AMAG shipped 327,700 tonnes of aluminium products – 4 per cent less than 341,500 tonnes during the corresponding period of the last year. In Q3, the company's shipment amounted to 98,300 tonnes, down by 8.6 per cent Y-o-Y from 107,600 tonnes.
Due to lower shipments, AMAG's net income after taxes also edged a fall in Q3 and nine months of the year. In Q3, the net income stood at EUR 18.7 million versus EUR 28.3 million a year ago, and that in nine months totalled EUR 69.7 million compared to EUR 106.7 million in the previous year.
The company's EBITDA in Q3 2023 was EUR 48.2 million after a fall of 20.7 per cent from EUR 60.8 million in Q3 2022, and the EBITDA in nine months was EUR 166 million compared to EUR 217.4 million a year earlier.
AMAG's metal division reaped benefits from stable production levels in Canada's Alouette smelter, but was offset by lower aluminium prices. The casting division leveraged the continued stable market environment in the automotive sector, while the rolling division felt a hit from its related industries; however, the turbulence was optimally countered by a broad portfolio and the right product mix.
Gerald Mayer, CEO of AMAG Austria Metall AG, commented: "With an operating result significantly above the pre-crisis level from 2019, we look back on a satisfactory earnings development overall. Nevertheless, the current recession is not sparing AMAG. The significant decline in demand, particularly for industrial applications, could only be partially compensated by the AMAG Group's broad positioning, its interest in Canada and its high flexibility. Order intake from the aircraft sector continues to be positive."
This is in line with AL Circle's forecast in its Aluminium Industry Outlook 2023 report that the aerospace industry would revive to the pre-covid level in 2023 and 2024.
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