AMG Advanced Metallurgical Group reports increased furnace sales in second quarter 2013
August 13, 2013
AMG Advanced Metallurgical Group N.V. has reported second quarter 2013 revenue of $291.5 million. Although this figure represents a 9% decrease for the group, furnace sales for both cast and sintering applications are reported as increasing some 34% to $13.3 million.
“Business conditions deteriorated during the second quarter 2013. Stable markets in North America were not enough to offset lower growth in Asia and a contraction in Europe. This resulted in sharp declines in specialty metal prices, which particularly affected AMG Processing and AMG Mining. AMG adjusted its business model to adapt to current market conditions, and took restructuring and non-cash asset impairment expenses related to AMG Engineering and AMG Mining. AMG also increased its focus on cost reductions and on positioning the business for improved cash flow generation. Management’s actions resulted in strong cash flows from operating activities, significant debt reduction, and improved the business’ ability to grow in the long term despite this challenging environment,” stated Dr Heinz Schimmelbusch, Chairman of the Management Board and CEO.
AMG Processing’s second quarter 2013 revenue decreased $23.8 million, or 14%, to $144.6 million. The decrease in revenue was primarily the result of significant price and volume declines across most materials. Prices and volumes decreased across most of AMG Processing’s materials due to the slowing Chinese economy and the stagnant European market.
AMG Engineering’s second quarter 2013 revenue increased $1.2 million, or 2%, to $66.6 million. Revenue from nuclear furnaces increased 72% to $8.4 million and casting and sintering furnace systems revenue increased 34% to $13.3 million. These increases were mitigated by 45% and 20% decreases in revenues from heat treatment furnaces and remelting furnaces, respectively, compared to the second quarter 2012. This division of AMG includes PM vacuum furnace manufacturer ALD Vacuum Technologies, based in Hannau, Germany.
AMG Mining’s second quarter 2013 revenue decreased $5.5 million, or 6%, to $80.3 million. Price declines caused revenue to decrease 10% and 4% for silicon metal and antimony, respectively. The decrease was partially offset by a 3% increase in revenue from graphite, a result of improved product mix, compared to the second quarter 2012.
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