The copper producer Aurubis benefits from higher commodity prices and higher refining fees at the start of the new financial year. Driving force for good results is increased prices of sulfuric acid, which is a waste product from copper production. Despite the negative impact of the weaker US dollar against the Euro, the group included in the Mdax sub-index is in line with its annual targets.
The weak US dollar is a burden, as it leaves less in the funds after calculating dollar-denominated earnings in Euros. However, the pre-tax operating profit for the year 2017/18 is expected to remain at the level of the previous year. In 2016/17, the North German company earned 298 million EUR.
In the first quarter of the financial year, the operating profit before tax increased more than four times the previous year to reach 79 million EUR. The Hamburg-based company eventually reported a net profit of 60 million EUR after 14 million EUR reported an year earlier. At that time, however, the planned closure for maintenance and repair of the Hamburg plant had a negative impact.
The relatively high fees for the processing and refining of copper concentrates due to the favorable input mix structure, as well as the high refining charges for copper scrap also positively influenced the results. A positive influence was also the yield of metal at favorable prices.
The sales revenue increased by about 17% to 2.87 billion EUR and the market expectations were more or less satisfied.
“The fiscal year started very well for us, given that the first quarter is usually weaker due to seasonal effects”, said the CEO of Aurubis, Jurgen Schachler.
The investors, however, did not receive the results well, and stocks fell by 3.20% to 77.70 EUR per share. In January, however, they reached a record high of 86.80 EUR per share before falling under pressure from global sales.