Austria Metal AG (AMAG) remains positive in the near term about the aluminum market as LME prices continue to climb, paired with increasing demand for secondary cast alloys and flat-rolled products.
However, the company’s aerospace customers remain affected by the COVID-19 pandemic, leading to lower demand. The producer expects an annual EBITDA income between €125-140mn.
The company is actively hiring 50 more employees at its Ranshofen plant in Austria to meet demand from the auto sector, it said in an earnings statement on Thursday.
In Q1 2021 AMAG noted that demand from its automotive customers offset the lower sales to aerospace. The company shipped 98,500mt of aluminum products in the first quarter, down by 1.1pc from the same quarter last year. It highlighted that 11,000mt in delayed primary aluminum shipments from the Alouette plant in Canada was pushed to the next quarter.
The company’s revenue in Q1 increased by 2pc on an annual basis to €251.2mn from €246.4mn. However, as an impact of the pandemic, AMAG’s net income declined by 55pc in the quarter to €5.1mn from €11.5mn in Q1 2020.