Key Highlights
•EBITDA([1]:
#_ftn1) was $25.1 million in the second quarter 2015, a 23% increase from the same period in 2014
•EPS, adjusted for the one-time cost of refinancing, on a fully diluted basis, was $0.33 in the second quarter 2015, a 22% increase from the same period in 2014
•Annualized return on capital employed increased to 15.7% in the second quarter 2015, from 9.9% in the same period in 2014
•As of June 30, 2015, net debt was $41.9 million, a reduction of $44.9 million in the second quarter of 2015
Amsterdam, 5 August 2015 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported second quarter 2015 revenue of $257.4 million, an 8% decrease from $278.9 million in the second quarter 2014. Net income attributable to shareholders, adjusted for the one-time costs of refinancing, for the second quarter 2015 was $9.2 million, or $0.33 per fully diluted share, a 22% increase from $7.4 million, or $0.27 in the second quarter 2014. EBITDA increased 23% to $25.1 million in the second quarter 2015 from $20.4 million in the second quarter 2014.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "AMG earnings and cash flow for the second quarter were strong despite an extremely weak metal price environment and the unfavorable translation impact of foreign currency on reported earnings.
AMG Engineering achieved EBITDA of $4.2 million during the quarter, the highest in eight quarters, making continuous progress towards our stated objective to reduce cost and return the Engineering business to historic levels of profitability in 2016. Order intake of $81.8 million, representing a 1.45x book to bill ratio, was the highest in thirteen quarters. The improvement was due to orders of heat treatment furnaces for the automotive market, plasma re-melting furnaces for the aerospace market and induction furnaces for powder metallurgy applications.
AMG Critical Materials continues to acquire market share in certain business units despite difficult trading conditions and double-digit market price declines in five of AMG's nine critical materials.
AMG reduced net debt by $45.9 million in the first half of 2015 to $41.9 million, a net debt to last twelve months EBITDA ratio of 0.46. AMG's strong balance sheet liquidity, as well as the Board's confidence in our long term ability to generate solid cash flow, has resulted in a change in dividend policy. This change reflects our commitment to return value to shareholders."