AMG reports fourth quarter and full year 2009 results
(Thomson Reuters ONE) -
Key Highlights
* Revenue was $231.4 million in the fourth quarter 2009; full year revenue
was $867.4 million
* EBITDA[1] was $12.4 million in the fourth quarter 2009; full year EBITDA was
$69.1 million
* EPS on a fully diluted basis was ($1.13) in the fourth quarter 2009; full
year EPS, was ($2.82); Adjusted EPS, excluding Timminco and non-recurring
charges on a fully diluted basis was $0.03 in the fourth quarter 2009; full
year EPS, was ($0.39)
* The Advanced Materials Division continued to recover in the second half of
2010; fourth quarter revenue was $124.3 million; EBITDA was $5.3 million
* The Engineering Systems Division fourth quarter revenue was $73.8 million;
EBITDA was $5.9 million
* Graphit Kropfmühl fourth quarter revenue was $33.3 million; EBITDA was $1.2
million
* As of 31 December 2009 cash on hand was $117.0 million, net debt of $86.8
million; $34.1 million full year 2009 free cash flow[2]
[1]EBITDA is defined as earnings before interest, tax, depreciation and
amortization and excludes nonrecurring items.
[2] Free cash flow is defined as EBITDA less change in working capital and
maintenance capital expenditures
Amsterdam, 17 March 2010 (Regulated Information) --- AMG Advanced Metallurgical
Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported fourth quarter 2009
revenue of $231.4 million a 17% decrease from $280.1 million in the fourth
quarter 2008.
EBITDA increased 264% to $12.4 million in the fourth quarter 2009 from $3.4
million in the fourth quarter 2008. Net loss attributable to shareholders for
the fourth quarter 2009 was ($30.2) million, or ($1.13) per fully diluted share.
Excluding non-recurring charges and Timminco, AMG's net income attributable to
shareholders for the fourth quarter 2009 was $0.8 million, or $0.03 per fully
diluted share. Net loss attributable to shareholders for the fourth quarter
2008 was ($54.1) million, or ($1.96) per fully diluted share.
Full year 2009 revenue decreased 32% to $867.4 million, from $1,280.1 million in
2008. EBITDA decreased 58% to $69.1 million in 2009 compared with $165.3
million in 2008. Net loss attributable to shareholders for the full year 2009
was ($75.6) million, or ($2.82) per fully diluted share. Excluding
non-recurring charges and Timminco, AMG's net loss attributable to shareholders
for the full year 2009 was ($10.6) million, or ($0.39) per fully diluted share.
Net income attributable to shareholders for continuing operations for the full
year 2008, excluding the non-recurring write down in AMG's investment in Graphit
Kropfmühl, was $74.3 million, or $2.70 per fully diluted share.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, commented:
"2009 was a challenging year. Our end primary markets of aerospace, energy,
infrastructure and specialty metals and chemicals underwent dramatic
contractions and dislocations caused by the global economic crisis. While AMG's
portfolio approach to metallurgical based solutions helped stabilize the impact
on revenues, we were still significantly affected across all of our business
units. The Advanced Materials Division's revenues and earnings improved in the
second half of 2009, driven by the recovery in the global economy. The
Engineering Systems Division entered 2009 with a significant order backlog, but
the market for capital equipment deteriorated as the year progressed. Graphit
Kropfmühl delivered consistent results throughout the year, driven by resiliency
in the energy and specialty chemicals markets, but profits were impacted by
higher raw material costs. During the fourth quarter, however, demand improved
with revenue increasing in both Advanced Materials and Engineering Systems. We
remain focused on our long term business strategy and we expect to see a
substantial improvement in market conditions in the second half of 2010."
Accounting Note
On September 28, 2009, the Company reduced its ownership percentage of Timminco
from 50.8% to 47.9%. AMG owned 42.5% of Timminco as of December 31, 2009. As
such, AMG accounts for Timminco under the IFRS equity method of accounting. For
purposes of this release, this accounting treatment requires AMG to
deconsolidate its investment in Timminco as of September 28 and include
Timminco's quarterly and year to date financial results as one line item -
"discontinued operations" on the profit and loss statement. For the fourth
quarter, Timminco's results are shown in the line item share of loss from
associates. The carrying value of AMG's investment in Timminco is included as
an "Investment in Associate" on the asset portion of AMG's balance sheet. As
such, the Key Figures below except for net income attributable to shareholders
and earnings per share exclude the financial performance of Timminco during the
period and all prior year figures have been restated to exclude Timminco.
Key Figures
In 000's US
Dollar
Q4 '09 Q4 '08 Change FY '09 FY '08 Change
Revenue $231,388 $280,076 (17%) $867,447 $1,280,120 (32%)
--------------------------------------------------------------------------------
Gross profit 46,354 35,671 30% 165,587 262,369 (37%)
Gross margin 20.0% 12.7% 19.1% 20.5%
--------------------------------------------------------------------------------
Operating 1,840 (51,094) N/A 20,561 78,869 (74%)
income (loss)
Operating 0.8% N/A 2.4% 6.2%
margin
Net (loss) (30,227) (54,096) N/A (75,642) 14,453 N/A
income
attributable to
shareholders
--------------------------------------------------------------------------------
EPS- Fully ($1.13) ($1.96) ($2.82) $0.53
diluted
Adjusted ($0.38) ($0.39)
EPS-Fully $0.03 2.70
diluted[1]
EBIT[1] 6,165 (3,193) N/A 45,370 140,453 (68%)
EBITDA[1][2] 12,432 3,413 264% 69,128 165,330 (58%)
EBITDA margin 5.4% 1.2% 8.0% 12.9%
--------------------------------------------------------------------------------
Notes:
[1]Adjusted for non-recurring, restructuring charges, discontinued operations
and equity accounting treatment for AMG's investment in Timminco
[2]EBITDA is defined as earnings before interest, tax, depreciation and
amortization and excludes nonrecurring items
Operational Review - Fourth Quarter 2009
Advanced Materials Division
Q4 '09 Q4 '08 Change
----------------------------------------------------------
Revenue $124,306 $146,469 (15%)
Gross profit 20,827 1,180 1665%
Operating income (loss) 689 (14,853) N/A
EBITDA 5,331 (13,270) N/A
Capital expenditures 4,983 13,648 (63%)
The Advanced Materials division's fourth quarter 2009 financial results
continued to be impacted by sluggish demand for the majority of its products,
most notably in the steel, superalloy and titanium markets. Fourth quarter
revenue decreased 15% to $124.3 million from the fourth quarter 2008.
Gross margin percentage increased from 1% of revenue in the fourth quarter of
2008 to 17% in the fourth quarter of 2009. The 2008 gross margin was impacted
by a write down in ferrovanadium inventories. Gross margin in 2009 was
characterized by slightly lower volumes in most specialty metals and a decline
in end product prices slightly offset by cost containment measures, from the
fourth quarter of 2008. The decrease in revenue and margins was primarily
caused by ferrovanadium, with reference prices decreasing by 47% and volumes
declining by 12% over the fourth quarter 2008. Titanium master alloys, vanadium
chemicals, ferronickel-molybdenum and ferrotitanium products were also impacted
by falling end market prices. Even more significant were the decreased volumes
as the result of decreased global demand. Aluminium master alloys volumes
decreased 9% and titanium master alloys volumes declined by 80% during the
fourth quarter 2009 compared to the fourth quarter 2008. Despite these
challenges, end market demand continued to improve slowly from a bottom in the
second quarter of 2009.
The fourth quarter 2009 EBITDA increased by $18.6 million to $5.3 million,
compared to the same period in 2008. This was the result of the increase in
gross margin, which was driven by cost savings and efficiency initiatives
implemented during 2009. Sequentially, fourth quarter 2009 EBITDA was
essentially flat, with increases in revenues and margins offset by corporate
costs.
Capital expenditures were $5.0 million for the third quarter 2009, 63% less than
the comparable period in 2008. The Division was only performing maintenance
capital investment during the quarter because of the cost containment measures.
Engineering Systems Division
Q4 '09 Q4 '08 Change
------------------------------------------------------
Revenue $73,809 $106,730 (31%)
Gross profit 22,415 32,252 (31%)
Operating income 1,542 12,173 (87%)
EBITDA 5,895 16,090 (63%)
Capital expenditures 2,988 9,384 (68%)
The Engineering Systems division's order intake was significantly affected by
the global economic slowdown as customers continued to defer investment
decisions during the fourth quarter 2009 because of the weak credit markets and
a slow recovery in their end market demand. Order backlog was at $162 million
on December 31, 2009, down 21% from $204 million on September 30, 2009. The
decrease was primarily due to a significant reduction in orders for solar
furnace systems to $12 million during the quarter. Overall, order intake was
$47 million during the fourth quarter 2009, only slightly below $48 million in
the third quarter 2009. The backlog consists primarily of melting and remelting
systems for the titanium and specialty steel industries and solar silicon DSS
furnaces.
Fourth quarter 2009 revenue decreased by $32.9 million or 31% compared to the
same period 2008. Sales of solar silicon DSS melting furnaces for the
photovoltaic industry decreased 53% in the fourth quarter 2009 compared to the
same period in 2008. During the fourth quarter 2009, 49% of revenue was
generated by sales of solar silicon and melting furnaces, down from 59% in the
same period 2008. Revenue from remelting systems, primarily for the aerospace
and specialty steel industries, decreased by 67% during the fourth quarter
2009. The recently implemented nuclear business contributed $4.3 million in
revenue during the fourth quarter, a 54% increase over the same period 2008.
Despite these challenging markets, the Engineering Systems division was able to
stabilize gross margin at 30% of revenue in the fourth quarter 2009 the same
level as in the fourth quarter 2008. The stable gross margin was due to
constant prices per unit and a slight decrease in raw material prices.
Fourth quarter 2009 EBITDA was $5.9 million, a 63% decrease over the same period
in 2008. The EBITDA margin decreased to 8% during the fourth quarter 2009
compared to 15% for the same period in 2008. The EBITDA margin decrease was
attributable to the lower revenue, and increases in research and development and
corporate expenses.
Capital expenditures decreased to $3.0 million in the fourth quarter 2009, 68%
less than the comparable period in 2008. This decrease was a result of the
completion of the expansion of the Berlin production plant and the heat
treatment services facility in Mexico during 2008 as well as the focus on
minimizing capital investment during the fourth quarter 2009.
Graphit Kropfmühl
Q4 '09 Q4 '08 Change
------------------------------------------------------
Revenue $33,273 $26,877 24%
Gross profit 3,112 2,239 39%
Operating loss (391) (48,414) 99%
EBITDA 1,206 593 103%
Capital expenditures 762 3,335 (77%)
Graphit Kropfmühl's ("GK") fourth quarter 2009 revenue increased by 24%
primarily due to an increase in silicon metal revenues.
Gross margin improved to 9% of revenue in the fourth quarter 2009 from 8% of
revenues in the fourth quarter 2008. The fourth quarter 2008 operating income
of negative $48.4 million was a result of purchase accounting adjustments and
asset impairment charges related to the acquisition of GK.
Fourth quarter 2009 EBITDA was $1.2 million, a 103% increase compared to the
fourth quarter 2008. The EBITDA margin increased to 4% during the fourth
quarter 2009 compared to 2% in the same period 2008. The EBITDA margin increase
was attributable to the increase in revenue in both silicon and graphite and a
slight decrease in SG&A expenses.
Capital expenditures decreased to $0.8 million for the fourth quarter 2009, 77%
less than the same period 2008. The decrease in capital expenditures was a
result of the completion of the expansion of the silicon metal facilities in
early 2009.
Operational Review - Year 2009
Advanced Materials Division
FY '09 FY '08 Change
----------------------------------------------------------
Revenue $429,083 $756,726 (43%)
Gross profit 47,866 124,208 (61%)
Operating (loss) income (28,761) 49,293 N/A
EBITDA (36) 62,060 N/A
Capital expenditures 11,546 31,767 (64%)
Advanced Materials' 2009 revenue decreased by $327.6 million, or 43%, to $429.1
million. Gross profit decreased by $76.3 million or 61% to $47.9 million due to
lower average selling prices of many products and ferrovanadium in particular.
SG&A expenses decreased slightly from $70.4 million to $68.1 million as a
result of the decrease in direct costs offset by an increase in corporate
expenses. EBITDA decreased to breakeven due to the decrease in gross profit,
slightly offset by a decrease in SG&A.
Gross margins decreased from 16% in 2008 to 11% in 2009. This was caused by
significantly lower end product prices on average and decreased volumes,
particularly in ferrovanadium and coatings materials.
Operating loss in 2009 was ($28.8) million, down from income of $49.3 million in
2008. This was primarily due to the decrease in gross profit, which was
slightly offset by the slight decrease in selling, general and administrative
expenses, attributable to cost containment measures.
Capital expenditures were $11.5 million for the year, 64% less than 2008. The
Division performed only essential capital investment during 2009 to lower costs
and increase capacity. These investments included the completion of the
tantalum mine and hydropower facility expansion which began in 2008.
Engineering Systems Division
FY '09 FY '08 Change
-------------------------------------------------------
Revenue $320,530 $435,462 (26%)
Gross profit 105,776 136,296 (22%)
Operating income 48,015 83,495 (42%)
EBITDA 62,885 95,632 (34%)
Capital expenditures 6,735 29,648 (77%)
Engineering Systems' order intake for 2009 was $183.7 million. Engineering
Systems' 2009 revenue decreased by $114.9 million, or 26%, to $320.5 million.
Gross profit decreased by $30.5 million or 22% to $105.8 million due to the
significant decrease in revenues, particularly from advanced vacuum remelting
systems for titanium. SG&A expenses increased by $0.8 million to $58.1 million
as cost cutting measures in the Division were offset by an increase in R&D
spending related to new casting technology. EBITDA decreased by $32.7 million
to $62.9 million as a result of the decrease in gross profit.
Gross margins increased from 31% in 2008 to 33% in 2009. This was caused by a
favourable product mix involving high volumes of solar DSS furnaces and the in
sourcing of production, which reduced cost of goods sold.
2009 operating income was $48.0 million, down 42% from $83.5 million in 2008.
This was primarily due to the decrease in revenues and gross profit.
Capital expenditures were $6.7 million for the year, 77% less than 2008. The
decrease was the result of the completion of the DSS production facility and
heat treatment service operations during 2008 and only essential investments
being performed in 2009.
Graphit Kropfmühl
FY '09 8 months'08[1]
----------------------------------------------------------------
Revenue $117,834 $87,932
Gross profit 11,945 1,865
Operating income (loss) 1,307 (53,919)
EBITDA 6,279 7,638
Capital expenditures 7,251 7,014
Notes:
[1]2008 Gross profit and operating income include purchase accounting
adjustments in the amount of $10.8 million and $12.0 million, respectively.
AMG consolidated GK from May 2008 forward, when it acquired control. For the
eight months ended 31 December GK generated $87.9 million in revenue and $1.9
million in gross profit. The gross profit was primarily attributable to the
silicon metal business unit, offset by $10.8 million in purchase accounting
related to the acquisition of GK by AMG. EBITDA was $7.6 million or 9% of
revenue. GK spent $7.0 million in capital expenditures during the period,
primarily on the expansion of production capacity in the silicon metal
operations.
GK generated full year 2009 revenue of $117.8 million and $11.9 million in gross
profit. 55% of the gross profit was generated by the silicon metal unit and
45% was generated from the natural graphite business unit. 2009 EBITDA was $6.3
million or 5% of revenue. GK spent $7.3 million in capital expenditures
primarily due to the expansion of a silicon furnace and the relocation and
upgrading of certain natural graphite production activities.
Timminco
AMG's ownership in Timminco decreased to less than 50% of Timminco's common
equity as the result of issuance of shares by Timminco during the third quarter
2009. AMG owned 42.5% of Timminco's common equity as of December 31, 2009. AMG
now accounts for its investment in Timminco via the equity accounting method.
Timminco's net loss through nine months is included in discontinued operations
while its losses since deconsolidation are included in share of loss from
associates on AMG's income statement and the carrying value of AMG's investment
in Timminco of $19.5 million is reported as an asset on AMG's balance sheet.
Additional information on Timminco and its fourth quarter 2009 financial
statements can be found atwww.Timminco.com
Financial Review
Taxes
AMG recorded a tax provision of $15.2 million in the year ended 31 December
2009 on pre-tax losses of $28.6 million. This does not compare favourably with
the normalized effective tax rate of 38%. This is due to a $27.5 million loss
from AMG's share in Timminco's losses in the fourth quarter of 2009, which is
not deductible for tax purposes. Additionally, there are losses being generated
in jurisdictions where AMG already has significant net operating losses. The
inability to recognise these tax benefits is due to the Company's historical net
operating loss position of the subsidiaries where the expenses were recorded.
Liquidity
Q4' 09 Q4'08[1] Change
----------------------------------------------------------------
Total debt $203,796 $183,352 11%
Cash & short-term investments 117,016 139,786 (16%)
----------------------------------------------------------------
Net debt (cash) 86,780 43,566 99%
Notes:
[1] Restated to eliminate Timminco for comparative purposes.
AMG had a net debt position of $86.8 million as of December 31 2009. The
Company's liquidity position decreased by $43.2 million, due to $25.5 million of
capital investments and $33.9 million of capital infusions into Timminco, offset
by $16.4 million operating cash flows from continuing operations.
Recently AMG reached agreement to amend its senior credit facility (the "Credit
Facility") to improve financial flexibility and position itself to be able to
take advantage of potential market opportunities.
AMG's Credit Facility consists of a $100 million term loan and a $175 million
multicurrency revolving credit facility. The Credit Facility matures on August
30, 2012. AMG has increased its senior net debt leverage covenant from 2.00x
trailing twelve months EBITDA, as defined in the Credit Facility, to 3.00x
trailing twelve months EBITDA. The total leverage covenant remains unchanged at
3.75x trailing twelve months EBITDA.
Cash Flow
Twelve months ended
31 December 2009 31 December 2008
Cash flows (used in) from operations $(2,091) $123,353
Capital expenditures (25,532) (68,429)
Acquisitions, net of cash - (69,993)
Cash flows used in discontinued operations (32,039) (65,485)
Cash flows from other investing (32,610) (16,783)
Cash flows used in investing activities (90,181) (220,690)
Cash flows generated from financing
activities 15,060 30,774
Cash flows used in discontinued operations 47,578 48,800
Effect of exchange rates on cash held 3,177 (11,322)
Net decrease in cash and cash equivalents (26,457) (29,085)
Cash flows from operations were ($2.1) million for full year 2009 as compared to
$123.4 million in 2008. 2009 cash flows from operations were down significantly
year over year, as a result of a $96.2 million decrease in EBITDA, and a $26.1
million increase in working capital, as compared to 2008. The working capital
increase is the result of a decrease in accounts payable and customer deposits
in the Engineering Systems division, offset by a decrease in inventory due to
lower raw material prices and inventory levels for the Advanced Materials
division's products. Inventories declined by $52.8 million within continuing
operations.
Cash used in investing activities was $90.2 million in 2009. This decrease of
$130.5 million from 2008 is primarily related to the $42.9 million decrease in
capital investments, primarily in Advanced Materials and Engineering Systems and
the $62.9 million cost for the purchase of approximately 79.5% of Graphit
Kropfmühl in 2008.
2009 cash from financing activities was $62.6 million, a decrease of $16.9
million from 2008. This decrease was primarily the result of two factors, $20.0
million borrowed on the credit facility for the acquisition of approximately
79.5% of Graphit Kropfmühl in April 2008, and $10.7 million borrowings to fund
the working capital increases in Advanced Materials during 2008, offset in 2009
by a net $14.4 million draw down from various credit facilities.
Outlook
The market continues to show signs of improvement. The Advanced Materials
division is currently benefitting from increases in specialty metals prices and
demand, albeit from low levels. The Engineering Systems division entered 2010
with a substantially reduced backlog compared to 2009. Requests for new orders
are increasing from mid-year 2009 low levels, but the first half of 2010 will
continue to be challenging. GK's end markets are also gradually improving, but
this growth is not expected to accelerate until the second half of the year.
AMG remains positive on long term growth prospects for its core markets of
aerospace, energy, infrastructure and specialty metals and chemicals, however
most of the near term growth is expected to occur later in the year. Overall,
AMG expects its portfolio of metals based technology businesses to produce
results ahead of 2009 levels.
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US Dollars 2009 2008
Continuing operations *Restated
Revenue 867,447 1,280,120
Cost of sales 701,860 1,017,751
Gross profit 165,587 262,369
Selling, general and administrative expenses 137,537 138,227
Restructuring expense 7,782 2,879
Asset impairment expense 1,718 47,119
Environmental expense 3,998 1,433
Other expenses 173 2,430
Other income (6,182) (8,588)
Operating profit 20,561 78,869
Interest expense 18,419 20,077
Interest income (3,587) (6,414)
Foreign exchange loss 2,418 5,071
Net finance costs 17,250 18,734
Share of (loss) gain of associates (31,958) 547
(Loss) profit before income tax (28,647) 60,682
Income tax expense 15,205 36,962
(Loss) profit for the year from continuing operations (43,852) 23,720
Loss after tax for the year from discontinued operations (54,378) (21,162)
(Loss) profit for the year (98,230) 2,558
Attributable to:
Shareholders of the Company (75,642) 14,453
Minority interests (22,588) (11,895)
(98,230) 2,558
(Loss) earnings per share
Basic (loss) / earnings per share (2.82) 0.54
Diluted (loss) / earnings per share (2.82) 0.53
(Loss) earnings per share from continuing operations
Basic (loss) / earnings per share from continuing
operations (1.77) 0.94
Diluted (loss) / earnings per share from continuing
operations (1.77) 0.92
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
For the three months ended December 31
In thousands of US Dollars 2009 2008
Continuing operations *Restated
Revenue 231,388 280,076
Cost of sales 185,034 244,405
Gross profit 46,354 35,671
Selling, general and administrative expenses 42,605 36,754
Restructuring expense 2,087 2,750
Asset impairment expense 1,718 47,119
Environmental expense (164) 1,402
Other expenses 65 2,384
Other income (1,797) (3,644)
Operating profit (loss) 1,840 (51,094)
Interest expense 2,538 3,700
Interest income (970) (1,387)
Foreign exchange loss 2,594 2,977
Net finance costs 4,162 5,290
Share of loss of associates (29,273) (34)
(Loss) before income tax (31,595) (56,418)
Income tax (benefit) expense (2,436) 3,870
Loss for the year from continuing operations (29,159) (60,288)
Profit after tax for the year from discontinued operations 202 1,195
Loss for the year (28,957) (59,093)
Attributable to:
Shareholders of the Company (30,227) (54,096)
Minority interests 1,270 (4,997)
(28,957) (59,093)
(Loss) earnings per share
Basic (loss) / earnings per share (1.13) (2.02)
Diluted (loss) / earnings per share (1.13) (1.96)
(Loss) earnings per share from continuing operations
Basic (loss) / earnings per share from continuing
operations (1.13) (2.04)
Diluted (loss) / earnings per share from continuing
operations (1.13) (1.98)
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Financial Position
As at December 31
In thousands of US Dollars 2009 2008
Assets
Property, plant and equipment 211,022 313,470
Intangible assets 28,253 47,060
Investments in associates 34,794 15,700
Derivative financial instruments 1,718 -
Deferred tax assets 10,912 29,181
Restricted cash 13,263 15,889
Notes receivable 5,542 2,132
Other assets 11,980 11,612
Total non-current assets 317,484 435,044
Inventories 193,378 318,793
Trade and other receivables 147,787 173,422
Derivative financial instruments 4,954 6,393
Other assets 30,359 52,804
Short term investments - 95
Cash and cash equivalents 117,016 143,473
Total current assets 493,494 694,980
Total assets 810,978 1,130,024
Equity
Issued capital 725 724
Share premium 379,518 379,297
Other reserves 31,284 (2,215)
Retained earnings (deficit) (198,897) (123,110)
Equity attributable to shareholders of the Company 212,630 254,696
Minority interests 15,793 57,115
Total equity 228,423 311,811
Liabilities
Loans and borrowings 168,319 138,990
Employee benefits 91,358 103,176
Provisions 14,862 12,841
Government grants 669 291
Other liabilities 7,984 9,245
Derivative financial instruments 1,339 3,530
Deferred tax liabilities 26,395 56,013
Total non-current liabilities 310,926 324,086
Loans and borrowings 3,464 3,021
Short term bank debt 32,013 83,566
Related party debt - 6,456
Government grants 234 8,360
Other liabilities 46,179 53,882
Trade and other payables 69,791 156,697
Derivative financial instruments 6,048 15,419
Advance payments 54,764 94,049
Unearned revenue - 35,624
Current taxes payable 36,050 14,708
Provisions 23,086 22,345
Total current liabilities 271,629 494,127
Total liabilities 582,555 818,213
Total equity and liabilities 810,978 1,130,024
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US Dollars 2009 2008
Cash flows (used in) from operating activities *Restated
(Loss) profit for the period from continuing operations (43,852) 23,720
(Loss) for the period from discontinued operations (54,378) (21,162)
(Loss) profit for the period (98,230) 2,558
Adjustments to reconcile profit to net cash flows:
Non-cash:
Depreciation and amortization 23,758 24,877
Amortization of purchase accounting adjustment to
inventory - 8,178
Restructuring expense 7,782 2,879
Asset impairment loss 1,718 47,119
Environmental expense 3,998 1,433
Net finance costs 17,250 18,734
Share of loss (gain) of associates 31,958 (547)
Loss (gain) on sale or disposal of property, plant and
equipment 6,253 (547)
Equity-settled share-based payment transactions 13,729 16,909
Cash-settled share-based payment transactions 3,605 -
Income tax expense 15,205 36,962
Working capital adjustments
Change in inventories 45,338 (77,804)
Change in trade and other receivables (564) 53,166
Change in prepayments 12,490 (10,015)
Change in trade payables, provisions, and other
liabilities (97,919) 20,812
Change in government grants (7,783) (8,184)
Other 5,934 (7,986)
Interest paid (15,289) (14,949)
Interest received 2,468 5,922
Income tax paid, net (9,711) (23,104)
Cash flows from discontinued operations 35,919 26,940
Net cash flows (used in) from operating activities (2,091) 123,353
Cash flows used in investing activities
Proceeds from sale of property, plant and equipment 129 858
Acquisition of associates - (10,432)
Acquisition of subsidiaries (net of cash acquired of
$1,671) - (69,993)
Acquisition of property, plant and equipment and
intangibles (25,532) (68,429)
Related party loans (5,262) -
Investments in associates (28,943) -
Change in restricted cash 1,410 (286)
Other 56 (6,923)
Cash flows used in discontinued operations (32,039) (65,485)
Net cash flows used in investing activities (90,181) (220,690)
Cash flows from financing activities
Proceeds from issuance of debt 30,175 37,690
Repayment of borrowings (15,785) (7,754)
Other 670 838
Cash flows from discontinued operations 47,578 48,800
Net cash flows from financing activities 62,638 79,574
Net decrease in cash and cash equivalents (29,634) (17,763)
Cash and cash equivalents at January 1 143,473 172,558
Effect of exchange rate fluctuations and consolidation
changes on cash held 3,177 (11,322)
Cash and cash equivalents at December 31 117,016 143,473
About AMG
AMG, incorporated in the Netherlands, is a global leader in the production of
highly engineered specialty metal products and advanced vacuum furnace systems.
AMG serves growing industries worldwide with its unique combination of
metallurgical engineering expertise and production know-how. AMG is a market
leader in many of its products and systems, which are critical to the production
of key components for the aerospace, energy (including solar and nuclear),
electronics, optics, chemicals, construction and transportation industries. AMG
has two operating divisions, Advanced Materials and Engineering Systems, and
owns interests in publicly-listed companies Graphit Kropfmühl AG (Deutsche
Börse: GKR.DE) and Timminco Limited (TSX: "TIM").
The Advanced Materials Division develops and produces niche specialty metals and
complex metals products, many of which are used in demanding, safety-critical,
high-stress environments. AMG is one of a limited number of significant
producers globally of niche specialty metals, such as ferrovanadium,
ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and
ferrotitanium, used by steel, aluminum, chemical and superalloy producers for
aerospace, automotive, energy, electronics, optics, chemicals, construction and
other applications. Other key products produced by AMG include specialty alloys
for titanium and superalloys, coating materials, tantalum and niobium oxides,
vanadium chemicals and antimony trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum
furnace systems and operates vacuum heat treatment facilities. AMG is a global
leader in supplying technologically-advanced vacuum furnace systems to customers
in the aerospace, energy (including solar and nuclear), transportation,
electronics, superalloys and specialty steel industries. Examples of furnace
systems produced by AMG include vacuum remelting, solar silicon melting and
crystallization, vacuum induction melting, vacuum heat treatment and high
pressure gas quenching, vacuum precision casting, turbine blade coating and
sintering. AMG also provides vacuum case-hardening heat treatment services on a
tolling basis to customers through facilities equipped with vacuum heat
treatment furnaces.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of
AMG. Based on its secure raw material sources in Africa, China and Europe,
Graphit Kropfmühl is a specialist in the production of silicon metal and the
extraction, processing and refining of natural crystalline graphite for a wide
range of energy saving industrial applications.
Timminco Limited is a publicly listed associate of AMG. Timminco is a leader in
the production of upgraded metallurgical silicon for the rapidly growing solar
photovoltaic energy industry. Timminco also produces silicon metal for use in a
broad range of industrial applications.
AMG operates globally with production facilities in Germany, the United Kingdom,
France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka and
Australia and also has sales and customer service offices in Belgium, Russia,
China and Japan (website:www.amg-nv.com
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4901
Jonathan Costello
Vice President of Corporate Communications
jcostello(at)amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are
"forward looking." Forward looking statements include statements concerning
AMG's plans, expectations, projections, objectives, targets, goals, strategies,
future events, future revenues or performance, capital expenditures, financing
needs, plans and intentions relating to acquisitions, AMG's competitive
strengths and weaknesses, plans or goals relating to forecasted production,
reserves, financial position and future operations and development, AMG's
business strategy and the trends AMG anticipates in the industries and the
political and legal environment in which it operates and other information that
is not historical information. When used in this press release, the words
"expects," "believes," "anticipates," "plans," "may," "will," "should," and
similar expressions, and the negatives thereof, are intended to identify forward
looking statements. By their very nature, forward looking statements involve
inherent risks and uncertainties, both general and specific, and risks exist
that the predictions, forecasts, projections and other forward looking
statements will not be achieved. These forward-looking statements speak only as
of the date of this press release. AMG expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statement contained herein to reflect any change in AMG's expectations with
regard thereto or any change in events, conditions, or circumstances on which
any forward-looking statement is based.
The full press release including tables can be downloaded from the following
link:
[HUG#1394708]
AMG reports fourth quarter and full year 2009 results: http://hugin.info/138060/R/1394708/351629.pdf
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Datum: 17.03.2010 - 02:00 Uhr
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