Amsterdam, 8. October 2007 – In accordance with Netherlands law and practice, AMG Advanced Metallurgical Group N.V. (EURONEXT AMSTERDAM: AMG) provides annual and half-year results to its shareholders. To provide interim information with respect to performance in the third quarter, AMG today announced highlights for the quarter as well as its preliminary revenue for the three and nine month periods ended 30. September 2007.
“Quarterly performance was in line with management expectations. We are on a good track for a successful year,” said Dr. Heinz Schimmelbusch, Chairman of the Management Board and Chief Executive Officer.
Preliminary revenue for the quarter ended 30. September 2007 was $291 million compared to $230 million for the third quarter 2006, an increase of 27%.
Preliminary revenue for the nine months ended 30. September 2007 grew to $835 million compared to $691 million for the comparable period in 2006, an increase of 21%.
Third quarter preliminary revenue in the Advanced Materials division was $212 million, an increase of 12% over the comparable 2006 period. Preliminary revenue in the Advanced Materials division for the first nine months of 2007 was $628 million, an increase of 10% over the comparable 2006 period.
Third quarter preliminary revenue in the Engineering Systems division rose to $79 million, an increase of 95% over 2006, while the division’s revenue for the first nine months of the year to grew to $207 million or 70% more than the comparable 2006 period.
Third Quarter Highlights
The Advanced Materials division completed a number of important steps in the third quarter.
- AMG successfully completed the refurbishment of the primary furnace at its ferrovanadium plant in Cambridge, Ohio. This required a planned five-week halt in production during the third quarter. The project was completed on time and on budget.
- In the solar silicon business, Timminco Limited’s subsidiary, Becancour Silicon, Inc. (“BSI”) broke ground on its new facility, which is expected to begin solar silicon production by the end of the fourth quarter 2007. In September 2007, BSI signed its third solar silicon contract for 13,000 tonnes over five years. To finance further expansion and further quality improvement, Timminco completed a C$86 million equity offering. AMG contributed approximately half of the equity capital in the offering to retain its majority control position.
The Engineering Systems division performance for the quarter and the nine months ended 30. September 2007 was bolstered by the sale of industry leading products into strong solar, aerospace and energy markets.
- The division’s order backlog was $317 million at 30. September 2007. Approximately 75% of the backlog relates to solar and titanium furnaces. With this backlog the Company’s delivery schedule extends through 2009.
- AMG’s acquisition of a new manufacturing facility for solar furnaces in Berlin was completed in August. Refurbishment is ongoing, with production expected to begin in November.
AMG, incorporated in the Netherlands, is a leading global specialty materials company offering highly engineered metallurgical products and advanced vacuum furnace systems to a broad range of end markets. AMG utilizes its proprietary know-how to supply sophisticated metals and materials through its production and revenue activities in 12 countries on five continents. In addition, AMG designs, engineers and produces advanced vacuum furnace systems for growing industries globally. AMG’s metallurgical expertise has enabled it to capture leading market positions for many of its products and systems. Most of AMG’s products and systems are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG is organized into two business units: Advanced Materials and Engineering Systems.
The Advanced Materials unit develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, ferrotitanium, aluminium master alloys and additives, silicon metal (including solar grade), chromium metal and magnesium alloys, used by steel, aluminium, silicones and superalloy producers for aerospace, energy, electronics, optics, chemicals, construction and transportation applications.
The Engineering Systems unit designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG sells vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries.
AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, Canada, Mexico, Brazil and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: http://www.amg-nv.com).
Certain statements in this presentation constitute forward-looking statements, including statements regarding the company’s financial position, business strategy, plans and objectives of management for future operations. These statements, which contain the words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the directors of AMG Advanced Metallurgical Group N.V. (the “Company”) and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the achievement of the anticipated levels of profitability, growth, cost and synergy of the Company’s acquisitions, the timely development and acceptance of new products, the impact of competitive pricing, the ability to obtain necessary regulatory approvals, and the impact of general business and global economic conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein.
Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation.
The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.
This document has not been approved by any competent regulatory or supervisory authority.
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 2508
Chief Financial Officer