AMG Mettalurgy expects a bag of mixed goods in 2020 and but intends to achieve its previously announced guidance.
The company said the year promises to improve upon depressed base metals prices in 2019, with vanadium prices already up by 30pc in January 2020. However, Covid-19 and uncertainty over the resuming Boeing 737 MAX production make predictions difficult.
Revenue of critical material like Vanadium declined by 13pc to $762.4mn annually in 2019 from $873.4mn 2018. Q42019 revenue decreased by 23pc to $170.2 from $221.4mn in Q4 2018. The drop in Q4 2019 revenue was due to lower average prices across all the company’s business units, which was partially offset by larger sales volume for vanadium and chrome.
Gross profit for critical material also saw a steep decline of 44pc to $110.3mn in 2019 from $198.6mn during the year prior. Gross profit in Q4 2019 declined by 57pc to 21.7mn from $50.2mn in Q4 2018. The gross profit decline in Q4 2019 was mainly due to lower profits in the vanadium business.
AMG’s total revenue, including titanium, lithium, vanadium, declined annually in 2019 by 9pc to $1.1bn compared to $1.3bn in 2018. The company’s total revenue in Q4 2019 declined by 22pc to $268.5mn from $344.4mn during Q4 2018. The company’s EBITDA also declined annually by 44pc to $121.3mn compared to $217.1mn in 2018, while its Q4 2019 EBITDA decreased by 64pc to $22.7mn compared to $62.7mn in Q4 2018.