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.