COVID-19 impact: AMAG’s H1 revenue declined 16.4% due to lower shipments and aluminium price

AMAG, a leading Austrian premium supplier of high-quality aluminium cast and flat rolled products, reported revenue of EUR 463.8 million in the first half of 2020, down 16.4% due to lower shipments and aluminium price.

“Global economic growth in the first half of 2020 was considerably affected by the COVID-19 pandemic, leading to a major slowdown in the global economy and significantly affecting price and demand trends for AMAG’s products (primary aluminium, recycling cast alloys and aluminium rolled products),” the company said.

Gerald Mayer, CEO of AMAG: “After a good start to 2020, the COVID-19 pandemic was reflected in the second quarter mainly by a lower level of orders from the transport sector. AMAG’s broadly diversified product portfolio, with its focus on specialty products and sustainability, also exerts a stabilising effect in times such as these. In difficult market conditions, in the second quarter of 2020 we benefited above all from our successful adjustment of structural costs to reflect lower capacity utilization.”

EBITDA amounted to a total of EUR 59.3 million in the first half of 2020, compared with EUR 72.0 million in the prior-year period on lower demand as a consequence of COVID-19, especially in the transport sector in the Rolling and Casting divisions.

Net income after taxes amounted to EUR 12.4 million in the first six months of the current year; from EUR 18.9 million in the first six months of 2019.

Cash flow from operating activities improved from EUR 63.7 million to EUR 70.6 million compared with the first half of the previous year.

“The current high level of uncertainty regarding the further course of the economy makes it considerably more difficult to forecast earnings for 2020 as a whole.”

Gerald Mayer, CEO of AMAG: “Subdued market expectations, especially in the automotive and aircraft industries, do not alter the positive medium and long-term global demand trend for aluminium. The sustainability aspect will gain in importance at an accelerated pace, and offers a promising basis for AMAG’s successful development and growth.”