AMAG Austria Metall : reports revenue growth in Q1 2018

• Attractive market growth in primary aluminium and aluminium rolled products

• Market environment strongly affected by political topics

• Revenue up 2.2 % to EUR 263.2 million

• EBITDA of EUR 38.9 million below Q1 2017 (EUR 43.4 million) because of positive one-off effects in the previous year and start-up costs of the new plant

• Based on increasing customer approvals for the new plant, significant volume growth in the Rolling Division is expected for 2018

• 2018 outlook: EBITDA in a range between EUR 150 million and EUR 170 million

The market environment proved positive during the first months of 2018, despite being increasingly and significantly affected by special effects such as the still to be finalized US import tariffs on aluminium, the production cut imposed by the Brazilian authorities on the world's largest alumina refinery as well as US sanctions against Russia. Significant price fluctuations in primary aluminium and raw materials were the consequence.

AMAG Austria Metall AG made a successful start to 2018. Although shipments by the AMAG Group were down by around 6 % year-on-year to 101,000 tonnes mainly due to the planned modernisation activities in the Casting Division, revenue grew by 2 % to EUR 263.2 million due to the higher aluminium price (Q1 2017: EUR 257.5 million).

With earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 38.9 million, the second-highest operating result since the IPO was achieved in the first quarter. The reduction compared with the first quarter of 2017 (EUR 43.4 million) chiefly reflects positive one-off effects in the previous year and higher start-up costs associated with the site expansion programme.

AMAG achieved an operating result (EBIT) of EUR 18.6 million in the first quarter of 2018 (Q1 2017: EUR 24.7 million), and net income after taxes of EUR 12.9 million (Q1 2017: EUR 16.5 million).

Cash flow from operating activities almost doubled compared with the first quarter of 2017, rising from EUR 7.6 million to EUR 14.0 million. Cash flow from investing activities amounted to EUR -21.7 million, compared with EUR -44.6 million in the prior-year comparable period.

AMAG continues to have a solid balance sheet and financing structure. Compared with December 31, 2017, the equity ratio improved from 43.3 % to 44.5 %. The gearing ratio decreased from 46.4 % to 44.6 % in the same period.

2018 outlook:

In its latest analyses for 2018, market research institute CRU has upgraded its growth forecasts for primary aluminium and aluminium rolled products to almost 5 %.

Rising demand as well as the ramp-up of the new plants form a good basis for further growth at the Ranshofen site.

Helmut Wieser, CEO of AMAG: 'Our order books are well filled for the coming months and we are increasingly getting customer approvals for our new plant. For the 2018 financial year we expect significant volume growth in the Rolling Division.'

Due the aforementioned volatile market environment, characterised by political uncertainties, it is currently only possible to provide an earnings forecast for the 2018 financial year in the form of a wide range. Taking the past weeks' market conditions into consideration, EBITDA of between EUR 150 million and EUR 170 million is anticipated for 2018.