AMAG Austria Metall AG: AMAG reports increase in revenue and net income after taxes in 2014

Ranshofen (pta006/27.02.2015/07:30 UTC+1) - New shipments record: 7% growth to 375,900 tonnes
- Good earnings performance in 2014:
- Revenues: +5% to EUR 823.0 million
- EBITDA of EUR 114.7 million (compared with EUR 122.8 million in previous year) at upper end of communicated range
- Net income after taxes: +6% to EUR 59.2 million
- Dividend raised to EUR 1.20 per share
- Strategic corporate development successfully continued:
- Commissioning of new hot rolling mill
- Approval of "AMAG 2020" project

The 2014 financial year proved to be both eventful and successful for AMAG Austria Metal AG with regard to both corporate development and its operating business.

Important milestones to further secure the profitable growth path were achieved with the commissioning of the new hot rolling mill and the approval of the "AMAG 2020" project.

Helmut Wieser, CEO of AMAG: "With our 'AMAG 2020' project we will boost the capacity of our Rolling Division to more than 300,000 tonnes, and expand our product portfolio to include larger dimensions for cold rolled sheets and strips. Our Austrian Group headquarters site in Ranshofen is thereby developing into one of the European aluminium industry's most advanced, leading edge locations. We will create a total of around 250 new jobs."

In the 2014 financial year AMAG set new records in terms of both shipments and scrap utilisation. Shipment volumes were up by 7% to 375,900 tonnes in the 2014 financial year (2013: 351,700 tonnes). Scrap utilisation of 274,200 tonnes also reached a new record level (2013: 263,300 tonnes).

The new shipments record resulted in 5% growth in revenue to EUR 823.0 million (2013: EUR 786.4 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to EUR 114.7 million at the upper end of the communicated range (2013: EUR 122.8 million).

EBITDA in the Metal Division amounted to EUR 48.2 million (previous year: EUR 50.8 million). The higher premium level for primary aluminium almost fully offset a positive one-off effect from the previous year, as well as lower results from aluminium price hedging.

The Casting Division advanced its shipment volumes by 5% to a total of 83,300 tonnes, which was also reflected in a higher level of earnings, with EBITDA up from EUR 4.6 million to EUR 4.8 million.

Shipment volumes in the Rolling Division were up by 8% to 169,900 tonnes (2013: 157,600 tonnes). EBITDA decreased from EUR 63.5 million to EUR 59.9 million, which is particularly attributable to start-up costs for the "AMAG 2014" expansion project. Higher costs for raw materials were offset by both volume growth and higher prices.

The earnings contribution from the Service Division was down from EUR 3.9 million in the previous year to EUR 1.9 million due to changes in provisions.

The AMAG Group achieved an operating profit (EBIT) of EUR 59.0 million in the 2014 financial year (2013: EUR 72.4 million).

Consolidated net income after taxes of EUR 59.2 million were ahead of the previous year's EUR 56.0 million, with the growth deriving primarily from positive effects in the area of deferred tax.

A major success was achieved in 2014 in optimising metal stocks, which were reduced by around 20% year-on-year, thereby freeing up a significant volume of capital.

Primarily as a result of this release of capital, the Management Board will propose an increase of the dividend from EUR 0.60 to EUR 1.20 per share to the Annual General Meeting to be held on April 16, 2015. This corresponds to a dividend yield of 4.8% in relation to the average share price in 2014.

At EUR 130.8 million, compared with EUR 129.9 million, 2014 represented a further year characterised by a high level of investments. Most of these investments were attributable to the "AMAG 2014" expansion project, as in the previous year. The qualification process with the customers for the new plant is running to schedule.

Mainly due to investments, total assets increased from EUR 933.5 million in the previous year to EUR 1,092.5 million. The equity ratio amounts to 57.1% (2013: 62.6%). Gearing remains at a solid level of 14.9% (2013: 8.6%).

Business trend outlook for 2015

The CRU market research institute forecasts that attractive rates of growth in primary aluminium and aluminium rolled products will continue in 2015. Total global consumption is set to increase by around 6% in both of these areas. As far as aluminium rolled products are concerned, faster growth is anticipated than in 2014 in AMAG's core European and North American markets. The transportation area is a key driver in this context, which is forecast to grow by around 14% in 2015, especially due to the wider usage of aluminium within the automotive industry.

Helmut Wieser, CEO of AMAG: "Lightweight construction utilising aluminium is a very efficient way to reduce the fuel consumption and CO2 emissions of cars and aircraft."

Increased macroeconomic uncertainties and high volatility on commodity and currency markets are making it difficult to issue a precise forecast for the 2015 financial year at present.

Considering current conditions, the Management Board takes an overall positive view of the 2015 financial year.

AMAG - Key figures

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Emitter:	AMAG Austria Metall AG Lamprechtshausenerstraße 61 5282 Ranshofen Austria
Contact Person:	Dipl.Kfm. Felix Demmelhuber
Phone:	+43 7722 801 2203
E-Mail:	investorrelations@amag.at
Website:	www.amag.at
ISIN(s):	AT00000AMAG3 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)