AMG reports positive start to 2018
May 2, 2018
AMG Advanced Metallurgical Group N.V. has reported first quarter 2018 revenue of $308.4 million, a 20% increase from $258.0 million in the first quarter 2017. EBITDA for the first quarter 2018 was $44.5 million, a 35% increase from $33.0 million in the first quarter 2017. Net income attributable to shareholders increased 18% to $18.4 million in the first quarter 2018 from $15.6 million in the first quarter 2017.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, stated “AMG achieved a considerable improvement in profitability during the quarter, driven by improved pricing and higher sales volumes in AMG Critical Materials. In addition, continuing strong demand for our industry leading vacuum furnace solutions resulted in the highest quarterly order intake in ten years and the highest order backlog in over nine years.”
AMG Critical Materials generated EBITDA of $37.1 million during the first quarter 2018, an increase of 44% from $25.7 million in the first quarter of 2017, thanks to strong financial performance in vanadium, silicon, titanium alloys, graphite, chrome and aluminium, driven by higher vanadium and silicon metal prices, and strong sales volumes.
AMG Engineering achieved EBITDA of $7.4 million during the first quarter 2018, a slight increase from $7.3 million in the first quarter 2017. AMG Engineering signed $104.8 million in new orders during the first quarter 2018, representing a 1.74x book to bill ratio, driven by strong orders of turbine blade coating and Powder Metallurgy furnaces for the aerospace market, heat treatment furnaces for the automotive market and induction heated quartz tube (IWQ) furnaces for fibre optic applications. Order backlog was $255.8 million as of March 31, 2018, an increase of 24% compared to December 31, 2017.
In the first quarter of 2018, AMG generated cash from operating activities of $24.8 million, an increase of $7.0 million compared to the same period in 2017. As a result of the strong cashflow generation, AMG’s net debt decreased by $0.9 million in the first quarter of 2018, despite capital expenditures of $22.6 million during the period. In summary, the Company is operating at record levels.