AMAG Q3 core profit beats estimates, sees tough 2014
05/11/2013 07:06
VIENNA, Nov 5 (Reuters) - AMAG Austria Metall AG AMAV.VI expects tough conditions again in 2014 as aluminium prices stay under pressure, it said on Tuesday, while reporting third-quarter core profit that beat market expectations. "The current level of uncertainty means it is still too early to make any definitive statements with regard to 2014. However, there are indications of a difficult operating environment ahead next year, with aluminium prices set to remain low and no sign of a let-up in the pressure on margins faced by Casting and Rolling divisions," it said in a statement. Its third-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) fell 12.7 percent to 33 million euros ($44.6 million), beating the average estimate of 29.2 million euros in a Reuters poll of analysts. ID:nL5N0IP17O It reiterated its forecast from August that 2013 EBITDA could drop as much as 13 percent to between 116 million and 121 million euros. ID:nL6N0G315E "Overall, the management expects a positive year from an operational point of view. We believe that we will outperform the shipment volumes achieved in 2012. However, it should be noted that sustained pressure on margins for the Casting and Rolling divisions, combined with the low price of aluminium, will see consolidated profit narrow year on year," it said. AMAG, which in September named Alcoa AA.N executive Helmut Wieser as chief executive from April 2014, said its order backlog pointed to full capacity utilisation in the fourth quarter taking into account scheduled maintenance. The company produces primary and liquid aluminium as well as aluminium products for the aircraft and automotive industries. ($1 = 0.7402 euros) (Reporting by Michael Shields; Editing by Mark Potter) ((Michael.Shields@thomsonreuters.com)(+43 1 531 12 258)(Reuters Messaging: michael.shields.thomsonreuters.com@reuters.net)) Keywords: AMAG RESULTS/