Image: AMAG
The management of Austria Metall AG (Amag) with its headquarters in Braunau/Ranshofen is “on sight”. The intentionally broad product range is currently helping to keep capacity utilization in the plant high despite weak customer sectors. Because the (bicycle) warehouses in sports retailers are still full and because less aluminum is being used in facades, windows and furniture due to the weak demand in construction, Amag does not yet dare to publish a more detailed outlook for the entire year.
This is an uncertainty factor that somewhat clouds confidence, said the aluminum processor’s new CEO, Helmut Kaufmann, at his first annual press conference in his new role. As reported, predecessor Gerald Mayer will be CFO at voestalpine.
Because demand from aviation is increasing and demand from the automotive industry is stable, the aluminum processor is assuming that there will be sales growth in 2024.
Amag is very satisfied with the results for 2023. “We achieved the second-best earnings before interest and taxes (Ebitda, note) in history,” emphasizes the new CFO Claudia Trampitsch. But because the best year was the previous one, the key figures don’t look so great in comparison: Ebitda of 188 million euros means a loss of 24 percent, and a profit after taxes of 66 million euros is almost 40 percent below the record value of the previous year .
The result also reflects the low global aluminum market price, because this is directly reflected in the participation in the Alouette aluminum smelter in Canada. The decline in sales of rolled products also had an impact. In the second half of 2023, 20,000 tons less were rolled in the largest production division than in the previous year (from 223,400 to 204,800 tons). Sales director Victor Breguncci pointed out that Amag was slightly better than the general market development. The decline in demand has no effect on the number of employees (2000 without Alouette share). “The employees work on the systems where they are needed,” says Kaufmann, and there are no plans for a reduction.
The company’s sales, at 1.46 billion euros, were 15 percent lower than in 2022, primarily due to the lower aluminum price. Despite the declines, Amag did well operationally, it was emphasized several times. The work on new innovations continues.
Less debt
Key figures such as the equity ratio (from 40 to 46 percent) and the debt ratio (decrease in liabilities from 55 to 49 percent of equity) have developed significantly positively. No major investment projects are planned for the current year. The shareholders should receive 1.50 euros per share, the same as in the previous year.
more from economics
