Aurubis FY20 Profit Climbs, Sees FY21 Operating EBT To Range Up/down Y-O-Y; Stock Down

Shares of Aurubis AG (AIAGY.PK,AIAGF.PK) were losing around 1 percent in the morning trade in Germany after the non-ferrous metals provider said it expects fiscal 2021 operating earnings before tax or EBT in a range of down to up, compared to last year. This was after reporting increased results in its fiscal 2020.

For the current fiscal year, the company forecasts an operating EBT between 210 euros and 270 million euros. According to the company, the forecast range is slightly higher than prior year’s target range of 185 million euros to 250 million euros.

Roland Harings, Chief Executive Officer, said, “We’re starting the new fiscal year with a sense of cautious optimism, with a slightly higher forecast range.”

In fiscal 2020, operating EBT was 221 million euros, up 15 percent from last year.

Further, the company expects an operating ROCE of between 8 and 11 percent in 2021, as in the previous year.

In fiscal 2020, consolidated net income climbed to 265 million euros from 193 million euros in the last year. Operating consolidated net income rose 21 percent from the prior year to 167 million euros. Revenues grew to 12.43 billion euros from 11.90 billion euros a year ago. Operating ROCE also increased, reaching 9.3 percent.

Further, the company said its Executive Board and Supervisory Board will recommend the payout of a dividend of 1.30 euros per share at the Annual General Meeting on February 11, 2021.

Regarding the outlook, Aurubis said it expects global copper demand to increase again in 2021 following the temporary decline in 2020. Because of these expectations, the Aurubis copper premium will stay at the prior-year level of $ 96/t.

According to Rainer Verhoeven, Chief Financial Officer, the company wants to achieve an improvement of at least 100 million euros in earnings through the cost reduction program by 2022/23.

In Germany, Aurubis were trading at 66.62 euros, down 0.57 percent, after losing around 2 percent in the early trading.

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