Aurubis earnings increase again in third quarter

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

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.