Austria-based downstream aluminium producer Amag posted lower earnings on a yearly basis in the second quarter, as the effects of the US aluminium import tariffs caused a weaker performance in the company's three divisions, which is likely to extend through the rest of the year after the tariffs were increased in June.
Amag's earnings before interest, tax, depreciation and amortisation (ebitda) fell by 34.7pc to €34.6mn ($40.7mn) in the second quarter after revenues climbed by 3.5pc to €384.8mn. Total shipments edged higher by 0.4pc on the year to 110,800t. Earnings fell sharply despite the higher revenues and a small rise in shipments because of "increasing price pressure in various sales markets and the considerable cost increases (particularly in the areas of personnel and energy) in recent years".
"After a good start to 2025, the subdued market environment and the effects of the 25pc US import tariffs had the expected impact on the three operating divisions of the Amag Group in the second quarter of 2025," the company said. "The further increase in US tariffs to 50pc, which came into force on 4 June 2025, had only a limited impact on the second quarter of 2025. The corresponding effects on earnings will therefore be felt especially in the second half of 2025."
Ebitda fell by 15.4pc to €80.6mn in the first half of the year, on revenues that rose by 11.1pc to €786.2mn and shipments that increased by 2.9pc to 220,400t.
Earnings in Amag's metals division were hit by higher alumina prices as well as the US tariffs, while the casting division saw rising price pressure in sales of recycled cast alloys. The rolling division suffered from changes in the flow of goods as a result of the tariffs, with significant price declines in some markets alongside high energy and labour costs.
"Capacity utilisation has been maintained at a stable level so far, but earnings losses due to higher personnel and energy costs as well as US tariffs cannot be offset in the short term," chief executive Dr Helmut Kaufmann said. "It is therefore urgently necessary to reach a viable agreement with the US government on future trade conditions, to improve conditions in Austria as a business location and for the collective bargaining negotiators to show realism in the autumn round of talks."
