AMAG Austria Metall AG reports positive net income in FY2020 despite 8% decline in aluminium shipment

AMAG Austria Metall AG has reported its full-year 2020 results, significantly affected by the COVID-19 pandemic. After a satisfactory start to the first quarter of the year, considerable reductions in demand set in from the second quarter. However, a tangible recovery in the order situation was seen in AMAG’s all customer segments towards the end of the year, barring the aerospace industry, yet full-year revenue stood 4 per cent lower at EUR 904.2 million compared with EUR 1,066 million in 2019.

AMAG’s total shipment volume in FY2020 stood at 404,800 tonnes, down by about 8 per cent from the previous year. EBITDA decreased from EUR 143 million in 2019 to EUR 108.2 million in 2020, attributing to the challenging market environment.

Lower demand for aluminium, especially from the transport area and distribution, due to the COVID-19 pandemic primarily attributed to the decline in AMAG’s shipment and revenue.

For the reasons outlined above, the operating result (EBIT) of AMAG amounted to EUR 25.3 million in the financial year 2020, compared with EUR 61.1 million in the previous year. Nonetheless, net income after taxes at EUR 11.6 million in FY2020 in comparison with EUR 38.6 million in FY2019 clearly showed a sign of positivity.

The key balance sheet figures also reflect AMAG’s stable position. Net financial debt stood at EUR 316.8 million as of December 31, 2020, compared with EUR 292.9 million as of the end of 2019.

Gerald Mayer, CEO of AMAG, said: “The year 2020 highlighted in particular the importance of a solid business model and a stable financial position. We have achieved a lot during a challenging period, successfully adjusting structural costs to lower capacity utilisation in the short term, as well as developing the company strategically during the crisis. We have, for example, achieved initial marketing successes with around 30 new products, and by investing in Aircraft Philipp we have seized the opportunity to extend our value chain.”  

While sharing the outlook for 2021, AMAG reported that current economic activity is likely to continue to be affected by the COVID-19 pandemic, despite some improvements in the recent months.

Mr Mayer said, “Due to the encouraging trend in new order intake from many industries relevant to AMAG, we expect good capacity utilisation of our plants in the first months of 2021. Above all, thanks to our high level of innovation as well as our business model, which is geared towards sustainability, we are well equipped for the expected market recovery and upcoming challenges, despite remaining uncertainties.”  

AMAG also mentioned in the financial results that market research institute CRU expects significant growth rates in global demand for both primary aluminium and aluminium rolled products in the forthcoming years. In 2021, the decrease in demand from 2020 is to be offset by an increase of around 7 % in each case.

source https://www.alcircle.com/news/amag-austria-metall-ag-reports-positive-net-income-in-fy2020-despite-8-decline-in-aluminium-shipment-62614