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Aurubis Achieves Good Half-Year Result Despite Coronavirus Crisis

Metal News - Published on Mon, 18 May 2020

Image Source: Aurubis Copper
Despite the worldwide spread of the coronavirus, with extreme effects for the global economy, the Aurubis Group generated operating earnings before taxes of EUR 91 million in the first half of fiscal year 2019/20, previous year: EUR 103 million. Aurubis was able to balance out the reduced supply on the global raw material markets with flexible material planning and a broadly diversified supplier portfolio, ensuring that all production sites had a sufficient supply of concentrates and recycling materials. Stringent cost management nearly compensated for weaker demand for flat rolled products. Aurubis AG Executive Board Chairman Roland Haring said “Considering the COVID-19 pandemic, we have steered Aurubis through the crisis well so far. By implementing measures very early on, we were able to effectively protect our employees’ health, prevent infection chains from forming, and continue production without limitations. Despite the increasingly challenging raw material and sales markets, we can confirm our forecast for fiscal year 2019/20 thanks to our very robust business model and strong starting position in particular.”

A planned maintenance shutdown at the Hamburg plant in Q1 of the fiscal year led to a lower concentrate throughput and, consequently, to a result of EUR 31 million in Q1. Production at all of the sites was at a good level in Q2. The result in the prior-year period was strained in the amount of approximately EUR 25 million due to unplanned shutdowns.

Lower sales prices for sulfuric acid and significantly weaker demand for shapes and flat rolled products negatively impacted the result of the first half-year. In the previous year, the recognition of a receivable of EUR 20 million from the rejected sale of Segment Flat Rolled Products increased the operating result.

A substantially higher throughput in the KRS recycling facility in Lünen had positive effects on EBT. Refining charges for copper scrap were also considerably higher compared to the previous year. High precious metal prices and a higher metal result bolstered the 2019/20 half-year result.

Due first and foremost to higher precious metal prices, revenues rose to EUR 6,013 million (previous year: EUR 5,660 million) in the first half of fiscal year 2019/20. Aurubis achieved EBT of EUR 43 million from continuing operations on an IFRS basis (previous year: EUR 136 million).*

Outlook - Despite a weakening supply on the markets, Aurubis still expects to source a sufficient supply on the raw material markets for concentrates and copper scrap. Though treatment and refining charges for concentrates are under pressure, refining charges for copper scrap are still at a high level despite declining slightly. On the sales markets for copper products, the negative effects of ongoing production shutdowns in customer industries are intensifying. Aurubis assumes that demand for wire rod and shapes products will be weaker in the next few months.

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Posted By : Yogender Pancholi on Mon, 18 May 2020
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