Press Release

Aurubis meets earnings expectations while confirming forecast – large-scale shutdown in Pirdop successfully completed

Hamburg, Wednesday, August 10, 2016

The Aurubis Group generated operating earnings before taxes (EBT) of € 148 million in the first nine months of fiscal year 2015/16 (previous year: € 262 million). The operating return on capital employed (ROCE; rolling EBIT for the last four quarters) was 11.2 %
(previous year: 18.7 %). Both of these KPIs are below the previous year, as announced, but are at the level of market expectations.

Earnings were positively influenced by improved treatment and refining charges for copper concentrates due to an optimized input mix, continued high sales of rod and shapes and the ongoing strength of the US dollar.

In contrast, the nearly eight-week large-scale shutdown in Pirdop, Bulgaria, which was very successful and garnered global attention in the industry, had an adverse impact. A total of 52 companies and roughly 1,200 people participated in this maintenance and repair shutdown, the largest since 1986. The capital expenditure volume amounted to € 44 million, and eleven facilities were replaced in 54 days.

Continued weakness in the copper scrap markets, sulfuric acid markets impacted by an overcapacity as well as the lower cathode premium this year all strained the results as well.

“Having started at Aurubis in early July, I was pleased to hear that we carried out our shutdown in Pirdop in Q3 as scheduled and that our employees completed this very ambitious task so successfully. This was one reason why our operating EBT fulfilled market expectations in this quarter,” commented Jürgen Schachler, Aurubis CEO since July 1, 2016, regarding the results.

The prior-year earnings included positive extraordinary effects of about € 32 million, which mainly resulted from low precious metal inventories at the end of the third quarter.

The Aurubis Group’s revenues in the first three quarters of fiscal year 2015/16 reached € 7,076 million (previous year: € 8,467 million). The reduction in revenues is primarily due to lower copper prices.


Outlook
We continue to expect treatment and refining charges to be at a good level. In the case of sulfuric acid revenues, we currently don’t expect prices to recover. We don’t see a sustainable recovery of the copper scrap markets at the moment, either. Increasing metal prices could have a positive impact in this area, however.

For rod and shapes products, we expect stable demand at the level of the previous year. On the markets for strip products, we also anticipate stable demand at a low level in the key market segments.

Since a large portion of our income is based on the US dollar, we continue to expect positive earnings contributions, compared to the previous year, due to the strong US dollar.

The improvement projects that we have initiated are contributing to earnings in the current fiscal year; they will, however, only have a significant positive impact in future fiscal years.

“Accordingly, we can confirm our forecast for the entire year: compared to the record result of the previous year, we will generate a significantly lower but good result in fiscal year 2015/16,” Erwin Faust, CFO of Aurubis, summarized the fiscal year outlook.
 

You can find the complete report on the first nine months of fiscal year 2015/16, including the segment reporting, at www.aurubis.com

IFRS earnings before taxes for the first nine months amounted to € 98 million (previous year: € 245 million). 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 - Metals for Progress

Aurubis AG is a leading global provider of non-ferrous metals and one of the largest copper recyclers worldwide. The company processes complex metal concentrates, scrap metals, and metal-bearing recycling materials into metals of the highest quality. Aurubis produces more than 1 million tons of copper cathodes annually, and from them a variety of products such as wire rod, continuous cast shapes, profiles, and flat rolled products made of copper and copper alloys. Aurubis produces a number of other metals as well, including precious metals, selenium, lead, nickel, tin, and zinc. The portfolio also includes additional products such as sulfuric acid and iron silicate.

Sustainability is a fundamental part of the Aurubis strategy. “Aurubis responsibly transforms raw materials into value” – following this maxim, the company integrates sustainable conduct and business activities into the corporate culture. This involves a careful approach to natural resources, responsible social and ecological conduct in everyday business, and sensible, healthy growth.

Aurubis has about 7,400 employees, production sites in Europe and the US, and an extensive service and distribution system in Europe, Asia, and North America.

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).

Cookies

Aurubis would like to offer you the best possible service. To do this, we store information about your visit in so-called cookies. You can find detailed information about the use of cookies on this website under “Show details.” You can check or uncheck the options in the following selection bar to choose which of the different cookies you want to accept. However, you cannot deselect necessary cookies. By clicking OK, you agree to the use of cookies.

Show details

Necessary cookies help to make a website usable by enabling basic functions such as page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

Necessary Cookies

Name of Cookie Function Storage period

cookie-popup /
required-cookies

Stores whether (functional) cookies have been accepted. 24 months from setting / update

functional-cookies /
additional-cookies

Stores whether (optional) cookies have been accepted. 24 months from setting / update

AWSELBCORS

Amazon AWS: Used when distributing user requests to the servers.

Until the end of the session

 

Preference cookies enable a website to remember information that affects the way a website behaves or looks. This information includes e.g. B. Your preferred language or the region you are in.

Preference-Cookies

Name of Cookie Function Storage period

__utma

Google Analytics: Used to differentiate between users and sessions

24 months from setting / update

__utmb

Google Analytics: Used to determine new sessions & visits. Is updated every time data is sent to Google Analytics.

30 minutes from setting / update

__utmc

Google Analytics: In the past, this cookie operated in conjunction with the __utmb cookie to determine whether the user was in a new session/visit.

Until the end of the session

__utmz

Google Analytics: Stores where the user reached the page from.

6 months from setting / update

__utmt

Google Analytics: Used to limit the request rate.

10 Minutes

 

Cookies are small text files that websites use to make users’ experience more efficient, to provide certain functions, or to enable certain analyses. This site uses different types of cookies . Some cookies are placed by third parties that appear on our sites. We have no technical influence on cookies placed by third parties.