Shipment term

Record profit in fiscal year 2021 with shipment volumes returning to pre-crisis levels

EQS-News: AMAG Austria Metall AG / Tag(s): Annual results
17.02.2022 / 07:30
The issuer is solely responsible for the content of this announcement.

Ranshofen, February 17, 2022

AMAG Austria Metall AG: Record profit for fiscal year 2021 with shipment volumes returning to pre-crisis levels

– Significant revenue and profit growth due to stable production, high productivity and an attractive market environment in the primary aluminum sector

– Revenue of EUR 1,259.4 million significantly higher than prior year level due to increased shipment volumes and high aluminum prices (2020: €904.2 million)

– EBITDA achieved significant growth of +72% to €186.2 million (2020: €108.2 million)

– Net income after tax almost multiplied by six to 64.6 million euros (2020: €11.1 million*)

– Proposed dividend of EUR 1.50 per share reflects positive business performance

– Other highlights: New product fireworks constantly pursued and path to a climate-neutral AMAG mapped out

– Outlook for 2022: Demand for aluminum products continues to grow, according to CRU. Too early for earnings forecast due to uncertain market trend

* includes the correction according to IAS 8.41 (details are explained in chapter G of the consolidated financial statements)

AMAG Austria Metall AG increased shipment volumes in all its operating divisions in the 2021 financial year and even slightly exceeded pre-crisis levels from 2019. The positive market environment was thus exploited with success both in the primary aluminum sector and in recycled cast iron alloys and rolled aluminium. some products.

Gerald Mayer, CEO of AMAG comments: “With stable production output and high productivity, we have successfully met the high demand from almost all industrial sectors. We have implemented targeted product mix optimizations at our Ranshofen site and successfully served the existing customers Significant cost inflation, particularly for energy, metal alloys and logistics, negatively impacted earnings and margin trends from the second half of 2021. Our Canadian subsidiary Alouette made a contribution to the record results of the AMAG Group, as the particularly positive market environment was successfully exploited.

Income of EUR 1,259.4 million clearly reflects the significantly higher aluminum price and premium levels as well as the volume growth in the base year (2020: EUR 904.2 million). The average aluminum price over 3 months rose from 1,730 USD/t the previous year to 2,488 USD/t in the 2021 financial year (+43.8%). Shipment volumes saw considerable growth across all industry sectors and reached 442,300 tonnes in fiscal 2021, compared to 404,800 tonnes the previous year (+9.3%).

Earnings before interest, taxes, depreciation and amortization (EBITDA) recorded a significant increase of more than 70% to 186.2 million euros, thus reaching a new record in the history of AMAG (2020: 108.2 million euros). Growth in shipment volumes across all AMAG divisions and product mix optimizations at the Ranshofen site are the main drivers of this record. A particularly favorable market environment in the field of primary aluminum also contributed significantly to the positive development of the AMAG group. Overall, the EBITDA margin showed a marked improvement, rising from 12.0% the previous year to 14.8% the year under review.

After depreciation and amortization of €84.4 million in fiscal year 2021 (2020: €83.5 million), a triple digit operating result (EBIT) of 101.8 million euros were achieved, compared to 24.8 million euros the previous year. Net income after tax increased approximately sixfold year-over-year to €64.6 million in fiscal year 2021 (2020: €11.1 million).

Cash flow from operating activities amounted to 45.6 million euros in the year under review (2020: 107.3 million euros). The high profit contribution had a positive impact on cash flow, while the significantly higher aluminum price had an offsetting effect against inventory financing (working capital). A total of €69.8 million was spent on investments in the 2021 financial year, compared to 62.2 million euros the previous year. Free movement of capital amounted to -24.2 million euros as a result (2020: 45.1 million euros).

Key balance sheet figures continue to reflect AMAG’s stable position. Net financial debt amounted to €346.1 million at December 31, 2021 compared to €314.3 million at the end of the 2020 financial year. Equity amounted to 629.5 million euros at the end of the year under review (December 31, 2020: 602.7 million euros), and the equity ratio fell from 38.9% at December 31, 2020 to 39.5% at the end of 2021. the gear ratio at the end of the year under review was 55.0% (31 December 2020: 52.2%).

Proposed dividend:

The management board and the supervisory board will propose to the general meeting of shareholders a dividend of 1.50 euro per share. This corresponds to a dividend yield of around 4% compared to the year-end closing price of the AMAG share of EUR 41.00. As in the previous year, the Shareholders’ Meeting will be held virtually on April 20, 2022. The dividend payment date is April 27, 2022.

Outlook:

The positive economic forecast for 2022 with expected global growth of +4.4% and +3.9% for the Eurozone is marked by various uncertainties (eg supply chain inflation, geopolitical developments). The subsequent evolution of the COVID-19 pandemic, particularly with respect to viral mutations, can exert both rapid and significant influence on economic growth.

CRU (Commodity Research Unit) forecasts for demand for primary aluminum and aluminum products are promising. By 2022, interprofessional demand is expected to increase by 1.7% and 9.7% respectively.

The still satisfactory position of the order book at the Ranshofen site reflects the strong demand for aluminum products and makes it possible to anticipate a positive trend in shipment volumes. However, in some cases, significant increases in key production costs will continue to impact earnings and margin trends in fiscal 2022. Skilled labor shortages and deficient supply chains remain problematic .

Gerald Mayer, CEO of AMAG: “We are confident that after a record year in 2021, we will once again achieve strong results in fiscal 2022, despite significant cost increases. Risks include uncertain geopolitical developments, a significant rise in inflation and negatively impacted supply chains.”

In the primary aluminum sector, profits depend to a large extent on aluminum and raw material prices, which can be very volatile as experience shows. Currency fluctuations, particularly in terms of USD-CAD and EUR-USD, may also have an impact on the evolution of earnings.

It is too early to issue earnings forecasts in the form of an EBITDA range due to the uncertainties described.

Annual report 2021:

The 2021 annual report is now available for download in the Investor Relations area of ​​the AMAG website. It consists of the full financial report including the non-financial statement as well as a magazine summarizing the most important information about the company’s performance in 2021.

AMAG key figures:

millions of euros

2021

2020*

Change

Shipments in tons

442,300

404,800

9.3%

of which external shipments in tonnes

414,600

378,200

9.6%

Income

1,259.4

904.2

39.3%

EBITDA

186.2

108.2

72.0%

EBIT

101.8

24.8

310.9%

Net income after tax

64.6

11.1

484.3%

Cash flow from operating activities

45.6

107.3

-57.5%

Cash flow from investing activities

-69.8

-62.2

-12.2%

Employees1)

2,148

1991

7.9%

millions of euros

December 31, 2021

December 31, 2020*

Change

Equity

629.5

602.7

4.4%

Equity ratio

39.5%

38.9%

Gear

55.0%

52.2%

* A correction according to IAS 8.41 leads to an adjustment of the figures of the previous year (for more details, refer to the financial report, section G of the consolidated financial statements).

1) Average number of employees (full-time equivalents), including contract workers and excluding apprentices. Includes the 20% share of the personnel from the interest in Aluminerie Alouette as well as the personnel of the AMAG components.

About the AMAG Group

AMAG is one of Austria’s leading suppliers of high-quality aluminum castings and flat-rolled products for a wide variety of industries such as aerospace, automotive, sports equipment, lighting, mechanical engineering , construction and packaging industries. The Canadian aluminum smelter Alouette, in which AMAG holds a 20% stake, produces high quality primary aluminum while maintaining an exemplary net ecological footprint. At AMAG components, based in Übersee am Chiemsee (Germany), ready-to-assemble metal parts are also produced for the aerospace industry.

Investor contacts

Press contacts

Christopher M. Gabriel

Leopold Pocksteiner

Head of Investor Relations

Corporate Communications Manager

AMAG Austria Metall AG

AMAG Austria Metall AG

Lamprechtshausener Straße 61

Lamprechtshausener Straße 61

5282 Ranshofen, Austria

5282 Ranshofen, Austria

Phone. : +43 (0) 7722-801-3821

Phone. : +43 (0) 7722-801-2205

Email: [email protected]

Email: [email protected]

Website: www.amag-al4u.com

To note
The forecasts, budgets and forward-looking estimates and statements contained in this publication have been compiled on the basis of all information available to AMAG as of February 8, 2022. In the event that the assumptions underlying these forecasts prove incorrect, objectives are missed or risks materialize, actual results may differ from those currently anticipated. We are under no obligation to revise these forecasts in light of new information or future events.
This report has been prepared and the data it contains have been checked with the greatest possible care. Nevertheless, misprints and errors of rounding and transmission cannot be completely excluded. In particular, AMAG and its representatives assume no responsibility for the completeness and accuracy of the information contained in this publication. This publication is also available in German. In case of doubt, the German language version prevails.
This publication does not constitute a recommendation or a solicitation to buy or sell securities of AMAG.

17.02.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com