Amag Reports Mixed Performance in 3Q 2024 Amid Challenging Market Conditions

Amag

Austrian aluminium producer Amag has reported a mixed financial performance for the third quarter of 2024, with revenues and earnings up in Q3, but down over the first nine months of the year. Despite facing a weak industrial economy in Europe, the company has managed to generate solid earnings through strategic product mix shifts and operational flexibility.

Strong Q3 Performance, but Annual Decline

Amag’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 8.3% year-on-year to €52.2 million ($56.6 million) in Q3. This increase was driven by higher revenues, which climbed 7.1% to €370.9 million. The company also saw a 2.4% rise in shipment volumes, reaching 109,100 tonnes in Q3.

However, Amag’s overall performance for the first nine months of 2024 showed a decline. The company’s EBITDA fell by 11.1% to €147.6 million for the January-September period. Similarly, revenues for the first nine months dropped 5.6% to €1.079 billion, while shipments fell 1.3% to 323,300 tonnes.

Industry Challenges

Amag’s CEO, Dr. Helmut Kaufmann, attributed the company’s mixed results to the subdued economic situation in many European countries. While the company’s strategic flexibility has helped maintain profitability, the weak industrial economy is continuing to put pressure on prices and volumes in various sectors.

Looking forward, Amag has confirmed its EBITDA target for 2024, projecting earnings between €160 million and €180 million. This reflects the company’s cautious optimism as it navigates the ongoing challenges in the European market.

Amag Sees Strong Q4 Earnings but Faces Full-Year Decline in 2024

Amag

Fourth Quarter Delivers 22.5% EBITDA Growth as Metal Division Outperforms

Full-Year Results Slip Despite Resilient Shipments and Revenue

Austrian aluminium producer Amag reported robust fourth-quarter results for 2024, with EBITDA up 22.5% year-on-year to €31.6 million ($33.1 million). However, the company saw a slight decline in full-year performance, as EBITDA dropped 4.88% to €179.2 million, landing at the top end of its guidance range.

Metal Division Helps Offset Broader Demand Weakness

Q4 revenues climbed 17.26% to €371 million, driven by a 3.67% increase in shipment volumes to 101,700 tonnes. Full-year revenue was €1.45 billion, just 0.71% below the previous year. Shipments remained steady at 425,000 tonnes for 2024, down only 0.19%. Amag credited its metal division for supporting earnings despite an overall weak demand environment. Stable production at its Canadian smelter, higher aluminium prices, and lower average raw material costs helped offset negative factors, though rising alumina prices hurt margins in the second half.

Cautious Outlook for 2025, but Rolled Product Demand Set to Grow

Looking ahead, Amag forecasts subdued GDP growth in 2025, with 1% for Europe and just 0.3% for Germany. Nevertheless, the company expects demand for aluminium rolled products to rise by 4.5% next year, which could help underpin future results.