Total shipments were up 4% to 421,700 tonnes in 2017, driven by rising demand for aluminium products worldwide. The revenue of the Amag group rose 14% to 1,036 million euros year-on-year. Along with higher shipment volumes, this development also reflects the rise in the aluminium price, with the year average of 1,980 USD/t up by 23% compared with the previous year's average.
Earnings as well improved significantly: Earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 15% to a record level of 164.5 million euros. Operative earnings (Ebit) were up 19%, to 87 million euros, while depreciation and amortisation increased due to the commissioning of the new plants. Net income after taxes improved by 36% 63 million euros.
Helmut Wieser, CEO of Amag, commented: “The good operating result confirms the path we have adopted. We achieved new historic records in many areas in 2017 due to the strong demand from our customers, the positive market conditions and additional production capacities, and we exceeded the one billion euros revenue level for the first time in the history of Amag.”
Outlook for 2018
Looking ahead, Wieser said: “We aim to continue our successful growth and development in the coming years and create sustainable value. A stable ownership structure, a solid balance sheet, attractive market prospects and investments in the site expansion have created a good basis for this. We will benefit from a larger product portfolio, rising shipment volumes and productivity gains over the next years.”
Growth in demand for aluminium products is set to continue in 2018, according to the latest forecasts from the CRU market research institute. Demand for both primary aluminium and aluminium rolled products is predicted to increase by around 4%.
The ramp-up of the new plants is planned over several years. Additional growth potentials will be tapped in 2018 through specific targeted investments to extend the vertical range of production in the Rolling division and through modernising the plant park in the Casting division.
Business trends in the Metal division in 2018 will depend primarily on the future development of the market prices of aluminium and the related requisite raw materials, as well as the currency situation. Therefore, it is still too early to issue a revenue and earnings forecast for the 2018 business year as experience shows that commodity and currency markets prove to be very volatile, says Amag. The management board is confident, however, of continuing to benefit in 2018 from the growth course that has been adopted in the Rolling Division.