Advanced Metallurgical Group (AMG) has withdrawn its earnings guidance for the year on account of the COVID-19 pandemic and the consequently muddled path forward.
The company did, however, note that its production facilities are operational.
Dr Heinz Schimmelbusch, AMG’s chief executive officer and chairman of its Management Board, attributed the difficult quarterly results to the depressed aerospace industry—conditions he expects to persist for the foreseeable future.
AMG’s cost of sales fell to $235.1mn in Q1 2020 from $279.4mn during the same quarter last year. The firm suffered a loss, earning a gross profit of $43.2mn last quarter, which is substantially lower than its $67.1mn gross profit in Q1 2019. AMG’s Q1 2020 revenue dipped to $278.3mn—the result of significantly diminished metal prices—from $346.5mn during Q1 2019.
Lower Ferrovanadium and titanium alloy sales also pushed the company’s EBITDA down to $22.3mn, a 56pc decrease from $50.4mn in Q1 2019.