NEW YORK AMG Advanced Metallurgical Group NV has cited "significant price declines in vanadium and titanium alloys" as a factor in declining third-quarter revenue for its AMG Processing division.
AMG Processing posted revenue of $138.1 million for the three months ended Sept. 30, down 6 percent from $146.9 million in the same period last year.
"AMG Aluminum revenue increased 2 percent compared to the third quarter 2012, despite slightly lower aluminum prices. This improvement was more than offset by significant price declines in vanadium and titanium alloys, which resulted in 28-percent and 6-percent decreases in AMG Vanadium and AMG Titanium Alloys & Coatings revenue, respectively," the Amsterdam, Netherlands-based company said.
Cambridge, Ohio-based AMG Vanadium Inc. is a wholly owned subsidiary of AMG.
"The specialty metals industry experienced double-digit price declines during the third quarter 2013. These declines, from already low 2012 market price levels, were most significant in chrome metal, antimony and vanadium," AMG chief executive officer Heinz Schimmelbusch said in a statement. "As a result of low prices and lower capacity utilization, we are implementing fixed cost-reduction measures at AMG Processing to right-size the business for current market conditions."
The company said that specialty metals pricing and volumes are weak "due to destocking in the global aerospace value chain, continued stagnation for high performance steel, and slowing growth in China."