AMAG Austria Metall AG Posts Solid Half-Year Results Despite Market Challenges
AMAG Austria Metall AG reported a robust half-year performance amidst a weak market environment, particularly in Europe. The company benefited from a higher aluminum price in Q2 2024 and its broad market positioning, which helped offset the subdued demand for aluminum rolled products in specific industries.
The group's revenue for the first half of 2024 amounted to EUR 707.7 million, a decline from EUR 796.4 million in H1 2023, due to both price and volume factors. EBITDA was recorded at EUR 95.3 million, down from the strong EUR 117.8 million seen in the first half of 2023, yet it showed improvement compared to the second half of 2023. Net income after taxes stood at EUR 33.4 million, compared to EUR 51.0 million in the previous year.
Operating cash flow increased to EUR 75.7 million, up from EUR 68.0 million in H1 2023. The company has raised its EBITDA forecast for 2024, projecting it to fall between EUR 160 million and EUR 180 million, based on current aluminum prices, shipment volumes, and economic conditions.
Despite challenging conditions at the start of the year continuing into Q2 2024, AMAG's strategic investment in the largest smelter in North and South America paid off, benefiting from rising aluminum prices. In the Rolling Division, the demand for aluminum rolled products remained weak in certain sectors in Europe. However, the diverse product range and international customer base provided stability. The Casting Division maintained good shipment levels in a tough automotive market environment.
CEO Dr. Helmut Kaufmann highlighted the company's performance, stating, "With EBITDA around EUR 95 million, we are at a satisfactory level despite the challenging market situation. Our strategic investment in the smelter in Canada has proven its worth, strengthening AMAG's earnings. In Ranshofen, we expanded shipment volumes in the aviation sector. Our broad customer base in the automotive industry helps us navigate uncertainty. We expect a strong operating profit of EUR 160 million to EUR 180 million for the full year."
Total shipments for H1 2024 were 214,100 tonnes, down from 221,200 tonnes in H1 2023, reflecting decreased demand for aluminum rolled products. The Metal Division leveraged stable production at full capacity to benefit from higher aluminum prices. The Casting Division achieved good performance despite a slowdown in the automotive sector. In the Rolling Division, market challenges in Europe led to a decrease in shipments, though the flexible positioning allowed for significant product mix adjustments.
While the solid EBITDA positively impacted operations, the typical increase in receivables during the year significantly affected working capital. Cash flow from investing activities was EUR -48.5 million for the first six months of 2024, compared to EUR -50.6 million in H1 2023, resulting in a free cash flow of EUR 27.2 million, up from EUR 17.4 million in the prior year.
Net financial debt rose to EUR 390.0 million as of June 30, 2024, from EUR 364.3 million at the end of 2023. The company's equity stood at EUR 729.5 million as of June 30, 2024, down from EUR 746.3 million on December 31, 2023.
