Aurubis starts the current fiscal year with weaker earnings in the first quarter, as in the previous year
Hamburg | Wednesday, January 27, 2016
Aurubis AG generated operating earnings before taxes (EBT) of € 36 million in the first quarter of the current fiscal year 2015/16 according to preliminary figures and is therefore below the capital market’s expectations. Operating earnings before taxes in the first quarter of the previous fiscal year were € 39 million.
Lower precious metal production, a lower metal yield with reduced metal prices and weak copper scrap markets negatively impacted the results in the first quarter.
In contrast, good treatment and refining charges for copper concentrates, a high cathode output with satisfactory cathode premiums and good sales on the wire rod markets had a supportive impact. Moreover, the ongoing strength of the US dollar – the currency in which treatment and refining charges and the cathode premium are established – positively influenced the company’s results.
The market environment was satisfactory overall. In particular, weak scrap markets and a lower metal yield in connection with reduced precious metal prices were the factors that strained the first quarter results. Nevertheless, we still view the December earnings forecast for the entire fiscal year as realistic: Compared to the record earnings in the previous year, Aurubis will generate significantly lower but still satisfactory earnings in fiscal year 2015/16,
commented Aurubis AG Executive Board Spokesman Erwin Faust regarding the results.
IFRS earnings before taxes (EBT) in the first quarter of fiscal year 2015/16 are € -34 million according to preliminary figures (first quarter of the previous fiscal year: € 33 million) and are primarily influenced by a drop in metal prices. In contrast to operating earnings, IFRS earnings include measurement effects due to copper price fluctuations and other factors. Therefore, the operating earnings are decisive for Aurubis in assessing the business performance and managing the company.
Aurubis will publish the complete report on the first quarter of fiscal year 2015/16 on February 10, 2016 as scheduled.