Press Release

Aurubis earnings increase again in third quarter

Hamburg, Wednesday, August 13, 2014

Aurubis earnings increase again in third quarter – operating EBT € 75 million after nine months of fiscal year

 

Hamburg, August 13, 2014 – Operating earnings before taxes (EBT), the param-eter used for control purposes in the Aurubis Group, amounted to € 75 million for the company in the first nine months of fiscal year 2013/14 (€ 132 million in the previous year). Of this amount, € 48 million was generated in the third quarter (€ -9 million in the previous year).

 

Looking back on the first nine months of the fiscal year, higher treatment and refining charges (TC/RCs) for copper concentrates, the higher cathode premium and the distinctly rising demand for our key products rod and shapes led to the good earnings trend. However, continued weakness on the copper scrap markets with low refining charges, continued tightness on the sulfuric acid markets with corresponding low prices and a lower metal yield with reduced metal prices weighed on the result. Furthermore, the large maintenance and repair shutdown in Hamburg (Septem-ber/October 2013) and its after-effects impacted the first two quarters of the fiscal year.

 

"After two weak initial quarters, we have resumed our overall positive development and have returned to normal in the third quarter," explained Peter Willbrandt, Aurubis Executive Board Chairman.

 

The Aurubis Group’s (Aurubis) revenues in the first nine months of the fiscal year amounted to € 8,362 million (€ 9,631 million in the previous year). The decrease is mainly due to lower metal prices.

The net cash flow was € 209 million, well above the prior year (€ -2 million).

Earnings before taxes (EBT) based on IFRS were € 21 million (€ -286 million in the previous year). In contrast to operating earnings, IFRS earnings include valuation 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.

 

Outlook

The copper market should be well supported until the end of the fiscal year despite political uncertainties. We therefore expect cathode premiums to stay at a good level. According to market observers, copper prices will likely remain volatile at around US$ 7,000/t.

We expect the business trend in primary copper production to continue at the level of the third quarter. There are no significant changes in sight on the sulfuric acid markets.

We don’t anticipate any substantial momentum from the copper scrap market, either. Moreover, a scheduled 15-day shutdown in the main facilities in Lünen will strain earnings in the recycling sector.

The mainly positive economic environment should lead to a good ongoing business trend for rod and shapes despite the summer vacation period, during which demand traditionally decreases. We don’t expect any significant improvements in earnings in Business Line Flat Rolled Products yet from the continuation of restructuring measures during the next quarter.

 

"Overall, we expect earnings for the current fiscal year to exceed those of the previous year," Peter Willbrandt concluded.

 

You can find the complete report on the first nine months of fiscal year 2013/14 at www.aurubis.com.

Aurubis - Metals for Progress

Aurubis AG is a leading worldwide provider of non-ferrous metals and the largest copper recycler worldwide. The company processes complex metal concentrates, scrap metals and metal-bearing recycling materials into metals of the highest quality.

Its main area of expertise is the processing and optimal recovery of concentrates and of recycling raw materials with complex qualities. With its range of services, Aurubis is a forerunner in the industry. The group of companies is oriented towards growth, efficiency and sustainability: The main components of the strategy are the expansion of the leading market position as an integrated copper producer, entering new markets in the area of industries of the future, the highly efficient and optimal production of additional metals and by-products from complex raw materials, as well as practicing a responsible attitude when dealing with people, resources and the environment.

Aurubis produces more than 1 million t of copper cathodes annually and from them a variety of copper products such as wire rod, continuous cast shapes, rolled products and strips, as well as specialty wire and copper profiles and alloys. Precious metals, selenium, lead, nickel and a series of other products such as sulfuric acid and iron silicate also belong to the product portfolio.

Aurubis has more than 6,800 employees, production sites in Europe and the USA and an extensive service and sales system in Europe, Asia and North America.

Aurubis’ customers include companies in the copper semis industry, the electrical engineering, electronics and chemical industries, as well as suppliers of the renewable energies, construction and automotive sectors.

Aurubis shares are part of the Prime Standard Segment of the German Stock Exchange and are listed in the MDAX and the Global Challenges Index (GCX).

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