AG issued a profit warning after metals sales fell in its
fiscal fourth quarter and scrap and acid markets remained
Germany-based company said preliminary figures indicate a
pretax loss of 233 million ($314.4 million) for the
fiscal year ended Sept. 30 in contrast to earnings of 516
million in the same period a year earlier.
The loss was mainly
due to negative valuation effects arising from a sharp drop in
metals prices, but the companys overall performance was
also weakened by unfavorable scrap and sulfuric acid
operating income stood at 111 million ($149.8 million) in
its fiscal year compared with 296 million a year
Metals prices improved
during the companys fiscal fourth quarter after
nosediving in the previous quarter, leading to pretax earnings
of 53 million ($71.5 million), while its operating result
for the same period showed a 22 million ($29.7 million)
loss as metal production dropped during large-scale maintenance
at its Hamburg plant.
"The entire year was
impacted by poor copper scrap and sulfuric acid markets as well
as weak product markets, which continued to be affected by
economic factors," Aurubis chief executive officer Peter
Willbrandt told investors Nov. 5. "There were also negative
valuation effects due to much lower precious metal prices.
Furthermore, our two large projects in Hamburg and the
restructuring of our flat products line weighed on
Aurubis expects some
of those strains to ease in the next financial year as Hamburg
returns to normal operations and the companys
restructuring of its flat-rolled production division is
completed, he said.
The company is set to
publish its full results for the year Dec. 16.
A version of this
article was first published in AMM sister publication Metal