EANS-News

AMAG Austria Metall AG: Aluminium price and raw materials costs impact Q1 2019 results - Seite 2

significantly to the earnings increase year-on-year. Moreover, the first-time
application of the IFRS16 standard led to an EBITDA shift of EUR 3.6 million
from the Service Division to the Rolling Division. Overall, EBITDA in the
Rolling Division grew from EUR 24.3 million to EUR 32.1 million.

EBITDA in the Service Division decreased year-on-year from EUR 3.0 million to
EUR -1.1 million in the first quarter, especially as a consequence of the
aforementioned shifts in to the Casting and Rolling divisions of around EUR 4.0
million due to IFRS 16.

Including almost unchanged depreciation and amortisation compared to the
previous year (EUR 20.2 million after EUR 20.4 million in the first quarter of
2018), earnings before interest and taxes (EBIT) for the AMAG Group amounted to
EUR 12.8 million, after EUR 18.6 million in the first quarter of 2018. Net
income after taxes amounted to EUR 7.6 million in the first quarter of 2019 (Q1
2018: EUR 12.9 million).

In the first three months of 2019, cash flow from operating activities was
impacted by the earnings trend and the aluminium price trend, and reduced from
EUR 14.0 million to EUR 7.8 million in a year-on-year comparison. Cash flow from
investing activities of EUR -21.9 million was nearly unchanged compared with the
first quarter of 2018.

AMAG reports a solid balance sheet and financing structure. At 39.8 %, the
equity ratio remained unchanged compared with December 31, 2018, while the
gearing ratio rose moderately from 50.1 % at the end of the year 2018 to 52.8 %
due to a higher working capital.

2019 outlook:
Market research institute CRU expects global demand for primary aluminium to
grow by around 2 % in 2019. Global demand for aluminium rolled products is
expected to increase by around 3 % in 2019.

Experience shows that prices for aluminium and alumina can exhibit high
volatilities over the course of the year. Additional forecasting uncertainties
exist in connection with general economic trends, trade conflicts and customer
sales trends, particularly in the transport industry.

Due to the outlined uncertainties, an earnings forecast is only possible in the
form of a wide range. According to current estimates, EBITDA in the 2019
financial year is expected in a range between EUR 125 million and EUR 155
million.


AMAG - key figures:
_____________________________________________________________________________
|EUR_millions_____|____________Q1_2019|____________Q1_2018|_____________Change|
|Shipments in | 111,600| 101,000| 10.5 %|