SOURCE: AMG Advanced Metallurgical Group N.V.

August 12, 2009 01:10 ET

AMG reports second quarter results

AMSTERDAM, NETHERLANDS--(Marketwire - August 12, 2009) -


Key Highlights

  * Revenue decreased 43% from $413.0 million in Q2 2008 to $233.4
    million in Q2 2009; H1 2009 revenue was $479.5 million
  * EBITDA[1] decreased 79% from $63.4 million in Q2 2008 to $13.0
    million in Q2 2009; excluding Timminco, EBITDA was $22.2 million
    in Q2 2009; H1 2009 EBITDA excluding Timminco was $38.0 million
  * EPS on a fully diluted basis decreased to ($0.36) compared to Q2
    2008 of $0.92 EPS. EPS, adjusted for non-recurring items was
    ($0.35) in Q2 2009
  * Advanced Materials Division was particularly impacted by the
    global economic slowdown, generating revenue of $96.5 million and
    EBITDA of ($2.0) million, in Q2 2009
  * Engineering Systems Division's produced solid results, generating
    revenue of $91.2 million and EBITDA of $22.5 million, in Q2 2009
  * Timminco generated $18.4 million in revenue and EBITDA of ($9.2)
    million as prices and volumes declined for most products during
    Q2 2009
  * Graphit Kropfmühl contributed revenue and EBITDA of $27.3 million
    and $1.7 million, respectively in Q2 2009
  * As of June 30, 2009 cash on hand was $110.1 million, net debt was
    $139.2 million, of which $54.1 million related to Timminco; Q2
    2009 free cash flow[2] was ($12.9) million, of which Timminco
    comprised ($4.3) million

[1] EBITDA is defined as earnings before interest, tax, depreciation and amortization and excludes nonrecurring items

[2] Free cash flow is defined as EBITDA less change in working capital and maintenance capital expenditures


Amsterdam, 12 August 2009 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported second quarter 2009 revenue decreased 43% to $233.4 million from $413.0 million in the second quarter 2008.

Net loss attributable to shareholders for the second quarter 2009 was ($9.7) million, or ($0.36) per fully diluted share, compared to net income of $25.3 million or $0.92 per fully diluted share for the second quarter 2008. EBITDA declined 79% to $13.0 million in the second quarter 2009 from $63.4 million in the second quarter 2008. Excluding Timminco, AMG's EBITDA was $22.2 million for the second quarter 2009.

In commenting on results, Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "The difficult operating environment experienced during late 2008 and early 2009 continued during the second quarter of 2009. During the second quarter 2009, Advanced Materials, volumes increased slightly over the first quarter 2009, but both volumes and prices remain significantly affected by the unprecedented slowdown in global industrial activity. Engineering Systems backlog enabled it to deliver solid results during the quarter despite low levels of order intake. Despite some signs of a bottoming of economic activity, it is still early to declare that the markets are turning around, and AMG continues to limit capital investment and is reducing costs to preserve free cash flow."

He added, "AMG's majority owned subsidiary, Timminco Limited, continued to face multiple market and operating challenges during the quarter. Timminco is addressing those issues. Despite the ongoing decline in the transportation market, Graphit Kropfmühl delivered marginally profitable operations through its silicon metal division."


Key Figures


In 000's US Dollar
                                 Q2'09    Q2'08 Change

Revenue                       $233,370 $413,005  (43%)
Gross profit                    33,541   92,002  (64%)
Gross margin                     14.4%    22.3%

Operating income               (6,763)   40,880 (117%)
Operating margin                (2.9%)     9.9%

Net Income attributable to
shareholders                   (9,718)   25,273 (138%)

EPS- Fully diluted              (0.36)     0.92    N/A
Adjusted EPS-Fully diluted[1]   (0.35)     1.16    N/A

EBITDA[2]                       13,002   63,392  (79%)
EBITDA margin                     5.6%    15.3%

Notes:
[1] Adjusted for non-recurring, restructuring charges at Timminco
[2] EBITDA is defined as earnings before interest, tax, depreciation
and amortization and excludes nonrecurring items


Operational Review

Advanced Materials Division


                       Q2'09    Q2'08 Change
Revenue              $96,473 $226,452  (57%)
Gross profit           8,412   46,860  (82%)
Operating income     (8,014)   26,859 (130%)
EBITDA               (2,008)   30,528 (107%)
Capital expenditures   2,089    6,005  (65%)


The Advanced Materials division's second quarter 2009 financial results were impacted by continued weak demand for the majority of its products, most notably in the steel, superalloy and titanium markets. Revenue decreased by $130.0 million or 57% to $96.5 million.

Gross margin percentage decreased from 21% of revenue in the second quarter of 2008 to 9% in second quarter of 2009. This was caused by a sharp decline in end product prices and lower volumes, particularly in ferrovanadium from the second quarter of 2008. The decrease in revenue and margins was primarily caused by ferrovanadium, with reference prices decreasing by 74% and volumes declining by 5% over the second quarter 2008. Titanium master alloys, vanadium chemicals, ferronickel-molybdenum, ferrotitanium and antimony products were also impacted by falling end market prices. Even more significant were the decreased volumes as the result of inventory destocking and decreased global demand. Aluminium master alloys volumes decreased 57% and titanium master alloys volumes declined by 68% during the second quarter 2009 compared to the second quarter 2008. The global recession continued to impact industrial production across all markets.

The Advanced Materials division incurred $0.5 million in inventory write-downs related to ferrovanadium. The Division's working capital remained relatively constant during the second quarter 2009, after decreasing by over $23 million since December 31, 2008. Advanced Materials also reduced full time equivalent (FTEs) headcount by approximately 20% since September 30, 2008. These and other cost saving measures reduced SG&A expenses by approximately 19% from the second quarter 2008.

The second quarter 2009 EBITDA decreased by $32.5 million to negative $2.0 million, compared to the same period in 2008. This was the result of the decrease in revenue and gross margin, which were slightly offset by a decline in SG&A and conversion expenses. Sequentially, second quarter 2009 EBITDA improved by $6.4 million over the first quarter 2009 driven by cost saving measures and lower inventory write-downs.

Capital expenditures were $2.1 million for the second quarter 2009, 65% less than the comparable period in 2008. The Division was only performing maintenance capital investment during the quarter because of the cost containment measures.


Engineering Systems Division


                               Q2'09   Q2'08 Change
Revenue                      $91,179 $99,219   (8%)
Gross profit                  34,129  30,465    12%
Operating income              19,929  20,006     0%
EBITDA                        22,511  23,392   (4%)
Capital expenditures           1,677   6,687  (75%)



The Engineering Systems division continued to deliver good results in the second quarter 2009. Order-backlog was at $223 million on June 30, 2009, down 10% from $247 million on March 31, 2009. The decrease was primarily due to a significant reduction in orders for solar furnace systems to $4.5 million. Overall, order intake was $53.5 million during the second quarter 2009, up from $29.4 in the first quarter 2009. The backlog consists primarily of melting and remelting systems for the titanium and specialty steel industries and solar silicon DSS furnaces.

Second quarter 2009 revenue decreased by $8.0 million or 8%. Sales of solar silicon DSS melting furnaces for the photovoltaic industry increased 64% in the second quarter 2009 compared to the same period a year ago. During the second quarter 2009, 61% of revenue was generated by sales of solar silicon and melting furnaces, up from 34% in the same period 2008. Revenue from remelting systems, primarily for the aerospace and specialty steel industries, decreased by 50% during the second quarter 2009.

Gross margin increased 6% to 37% of revenue in the second quarter 2009 from 31% of revenue in the same period in 2008. The increase was due to changes in product mix, elimination of reserves related furnace warranties, raw material price decreases and cost reduction measures in the vacuum furnace production process.

Second quarter 2009 EBITDA was $22.5 million, a 4% decrease over the same period in 2008. The EBITDA margin increased to 25% during the second quarter 2009 compared to 24% for the same period in 2008. The EBITDA margin increase was attributable to the improvement in gross margin and the 11% reduction in FTEs since September 30, 2008, slightly offset by an increase in R&D expense.

Capital expenditures decreased to $1.7 million for the second quarter 2009, 75% less than the comparable period in 2008. This decrease was a result of the completion of the expansion of the Berlin facility during 2008 and the focus on minimizing capital investment during the second quarter 2009.


Timminco


                        Q2'09   Q2'08 Change
Revenue               $18,437 $62,710  (71%)
Gross profit         (11,883)  10,828 (210%)
Operating loss       (19,285) (8,326) (132%)
EBITDA                (9,200)   6,484 (242%)
Capital expenditures    6,746  12,691  (47%)


Timminco continued to be significnatly impacted by the global slowdown in the solar and industrial silicon markets. Second quarter 2009 revenue decreased by $44.3 million or 71% to $18.4 million over the same period in 2008. The decrease is primarily attributable to the sharp decline in sales volumes and prices of UMG Si and silicon metal products. Timminco sold 34 metric tons of UMG Si during the second quarter 2009 at an average price of C$39/kg.

Gross profit decreased to negative $11.9 million in the second quarter 2009 due to the increased costs related to solar grade silicon production and decreased volumes of other silicon metal products. The solar grade silicon production costs were relatively high due to low volumes and operating inefficiencies. All three silicon metal production furnaces were temporarily shut down during the quarter, with one furnace coming back on line in June resulting in lower absorption of fixed costs and lower gross margins.

Timminco incurred negative EBITDA of $9.2 million during the second quarter 2009 compared to EBITDA of $6.5 million in the second quarter 2008, due to lower gross profit and higher selling, general and administrative expenses. The increase in SG&A is primarily a result of the increase in the non-cash stock option expense.

During the quarter ended June 30, 2009, capital investment declined 47% to $6.7 million from $12.7 million in the comparable period 2008. Timminco deferred further capital expenditures other than those that were committed prior to the beginning of the quarter. Many of Timminco's customers are experiencing low revenues, are demanding a higher quality of Timminco's UMG Si due to the availability and favourable pricing of polysilicon on the spot market, and have reduced or deferred their purchases of silicon metal and solar grade silicon. Timminco has reached agreements with two of its solar grade silicon customers, to terminate or materially reduce contracted volumes under supply contracts and to repay customer advances, and is in negotiations with other customers to materially amend or terminate supply agreements which would also involve repayment of advances and reducing or eliminating contracted future volumes. These repayments, and the slowdown in the economic environment combined with substantially reduced UMG Si shipments, could continue to have a material adverse effect on Timminco's liquidity and ongoing compliance with its debt covenants. These and the other risks identified above create uncertainty about Timminco's ability to realize its assets and discharge its liabilities in the normal course of business. The consolidated financial statements for the second quarter, when filed, will not give effect to any adjustments to recorded amounts and their classification, which could be necessary should Timminco be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different than those reflected in the consolidated financial statements.


Graphit Kropfmühl

                       Q2'09 Q2'08 [1] Change
Revenue              $27,281   $24,624    11%
Gross profit           2,883     3,849  (25%)
Operating income         607     2,342  (74%)
EBITDA                 1,699     2,988  (43%)
Capital expenditures   1,376     1,952  (30%)

Notes: [1] Includes results from the acquisition of Graphit Kropfmühl on April 22, 2008


Graphit Kropfmühl ("GK") was significantly impacted by the decline in global economic activity during the second quarter 2009. Second quarter 2009 revenue increased by $2.7 million or 11% primarily due to the timing of the GK acquisition in 2008. The second quarter of 2009 represents three months of revenue while the second quarter of 2008 only included two months of revenue. This timing difference is offset by a decline in both silicon metal and graphite revenue.

Gross margin decreased to 11% of revenue in the second quarter 2009 from 16% of revenue in the period April 22 through June 30 2008. The decrease was due to a decline in the average selling price for silicon metal as well as significantly reduced volumes for graphite, which is substantially impacted by the transportation industry.

Second quarter 2009 EBITDA was $1.7 million, a 43% decrease compared to the period of April 22 through June 30 2008. The EBITDA margin decreased to 6% during the second quarter 2009 compared to 12% in the period of April 22 through June 30 2008. The EBITDA margin decrease was attributable to lower selling prices and volumes in both silicon and graphite.

Capital expenditures decreased to $1.4 million for the second quarter 2009, 30% less than the period of April 22 through June 30 2008.


Financial Review

Tax

AMG recorded a tax expense of $9.4 million in the quarter ended June 30, 2009 as compared to a tax expense of $14.1 million in the quarter ended June 30, 2008. A tax benefit for the pre-tax losses was not booked in the second quarter 2009 due to the losses being generated in jurisdictions where AMG already has significant net operating losses.


Liquidity


                          Q2'09    Q4'08               Change
Total debt              249,313 $232,033                 7%
Cash & cash equivalents 110,080  143,473                (23%)
Net debt                139,233   88,560                 57%

AMG had a net debt position of $139.2 million as of June 30, 2009, of which $54.1 million was attributable to Timminco. The Company's liquidity position decreased due to $33.3 million in capital investments, partially offset by Timminco's equity offering which netted $7.9 million of external proceeds. Timminco made $15.4 million in capital investments for the build out of the solar silicon production line during the first half of 2009.


Cash Flow


                                              H1'09             H1'08

Cash Flows (used in) / from Operations     $(1,138)            $8,250
Capital expenditures                       (33,318)          (56,504)
Acquisitions, net of cash                         -          (62,854)
Other investing                             (9,228)             3,078
Cash Flows used in Investing Activities    (42,546)         (116,280)
Cash Flows generated from Financing           8,172            43,444
Activities


The significant decline in net income was largely offset by lower investments in working capital and lower tax payments made during the six months ended June 30, 2009 resulting in negative cash flows from operations totaling $1.1 million, down from positive operating cash flows of $8.3 million in the first six months 2008. The lower level of cash flows from operations is primarily due to the net losses from the Advanced Materials Division and Timminco, and a decrease in advanced payments of $47.1 million at the Engineering Systems Division offset by improvements in inventory and accounts receivable balances of approximately $69.8 million. Cash flows used in investing activities of $42.5 million for the six months ended June 30, 2009 decreased from $116.3 million in the first six months of 2008. This is due to the $23.2 million decrease in capital investments, primarily in Advanced Materials and Engineering Systems, and the $62.9 million cost for the purchase of approximately 79.5% of Graphit Kropfmühl in April 2008.

Cash flows from financing activities were $8.2 million, a decrease of $35.3 million in the same period of 2008. This decrease was primarily the result of two factors, $20.0 million borrowed on the credit facility for the acquisition of approximately 79.5% of Graphit Kropfmühl in April 2008 and borrowings to fund the working capital increases in Advanced Materials and Timminco during 2008, offset in the first six months 2009 by $7.9 million of proceeds from the Timminco equity offering and a net draw down from various credit facilities.


Outlook

Demand continues to be low across most of AMG's end markets. Despite an increase in Engineering Systems' second quarter 2009 order intake over the first quarter 2009, the second half of 2009 will be challenging for that division. In Advanced Materials, the first signs of stabilization have appeared in recent weeks in a number of specialty metals, including ferrovanadium. As declines in demand and pricing have been significant during the first half of 2009, it will take some time until markets return to pre-financial crisis levels. AMG will continue to proactively address this reality and focus on cash preservation, and maintaining a conservative balance sheet through reductions in capital investment and cost containment programs.

About AMG

AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions of businesses, Advanced Materials and Engineering Systems, and owns majority interests in publicly-listed companies Timminco Limited (TSX: "TIM") and Graphit Kropfmühl AG (Deutsche Börse: GKR.DE).

The Advanced Materials Division 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, aluminum master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminum, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.

The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.

Timminco Limited is a majority controlled, publicly listed subsidiary of AMG. Timminco is a leader in the production of upgraded metallurgical silicon for the rapidly growing solar photovoltaic energy industry. Timminco also produces silicon metal for use in a broad range of industrial applications.

Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.

AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com).


For further information please contact:

AMG Advanced Metallurgical Group N.V.  +1 610 975 4901
Jonathan Costello
Vice President of Corporate Communications
jcostello@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are "forward looking". Forward looking statements include statements concerning AMG's plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG's competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG's business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words "expects," "believes," "anticipates," "plans," "may," "will," "should," and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG's expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based. Finally, statements of fact contained herein reflect the facts as of the date of this press release.


AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statement of
income

For the three  months ended June 30
In thousands of US Dollars                             2009      2008
                                                  Unaudited Unaudited
Continuing operations
Revenue                                             233,370   413,005
Cost of sales                                       199,829   321,003
Gross profit                                         33,541    92,002

Selling, general and administrative expenses         41,189    39,632
Restructuring and asset impairment expenses             311    13,118
Environmental expense                                   196        10
Other income, net                                   (1,392)   (1,638)
Operating (loss) / profit                           (6,763)    40,880

Interest expense                                      6,604     5,795
Interest income                                     (1,387)   (1,410)
Foreign exchange (gain) loss                        (3,243)       203
Net finance costs                                     1,974     4,588

Share of (loss) / profit of associates                (613)       617
(Loss) / Profit before income tax                   (9,350)    36,909

Income tax expense                                    9,395    14,112
(Loss) / Profit for the year                       (18,745)    22,797
Attributable to:
         Shareholders of the Company                (9,718)    25,273
         Minority interests                         (9,027)   (2,476)
                                                   (18,745)    22,797

(Losses) / Earnings per share
Basic (losses) / earnings per share                  (0.36)      0.94
Diluted (losses) / earnings per share                (0.36)      0.92



AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statement of income


For the six  months ended June 30
In thousands of US Dollars                          2009      2008
                                               Unaudited Unaudited
Continuing operations
Revenue                                          479,466   739,153
Cost of sales                                    421,791   579,941
Gross profit                                      57,675   159,212

Selling, general and administrative expenses      77,083    72,601
Restructuring and asset impairment expenses        4,090    13,245
Environmental expense                                307        94
Other income, net                                (3,083)   (3,016)
Operating (loss) / profit                       (20,722)    76,288

Interest expense                                  11,739     9,763
Interest income                                  (2,000)   (3,416)
Foreign exchange (gain) loss                     (2,817)     1,538
Net finance costs                                  6,922     7,885

Share of (loss) / profit of associates           (1,400)       718
(Loss) / Profit before income tax               (29,044)    69,121

Income tax expense                                13,434    22,793
(Loss) / Profit for the year                    (42,478)    46,328
Attributable to:
        Shareholders of the Company             (25,112)    47,782
        Minority interests                      (17,366)   (1,454)
                                                (42,478)    46,328

(Losses) / Earnings per share
Basic (losses) / earnings per share               (0.94)      1.78
Diluted (losses) / earnings per share             (0.94)      1.74




AMG Advanced Metallurgical Group
N.V.
Condensed interim consolidated statements of financial position

In thousands of US Dollars

                                   June 30, 2009    December 31, 2008
                                       Unaudited              Audited
Assets
     Property, plant and
     equipment                           337,770              313,470
     Intangible assets                    51,193               47,060
     Investments in
     associates                           14,359               15,700
     Deferred tax assets                  26,607               29,181
     Restricted cash                      13,357               15,889
     Notes receivable                      2,149                2,132
     Derivative financial
     instruments                             278                    -
     Other assets                         12,901               11,612
Total non-current assets                 458,614              435,044
     Inventories                         273,491              318,793
     Trade and other
     receivables                         150,251              173,422
     Derivative financial
     instruments                           3,837                6,393
     Other assets                         50,378               52,804
     Short term investments                  101                   95
     Cash and cash
     equivalents                         110,080              143,473
Total current assets                     588,138              694,980
Total assets                           1,046,752            1,130,024

Equity
     Issued capital                          724                  724
     Share premium                       379,297              379,297
     Other reserves                       18,843              (2,215)
     Retained earnings
     (deficit)                         (148,143)            (123,110)
Equity attributable to
shareholders of the Company              250,721              254,696

Minority interests                        60,915               57,115

Total equity                             311,636              311,811

Liabilities
     Loans and borrowings                162,631              138,990
     Employee benefits                   107,423              103,176
     Provisions                           13,007               12,841
     Government grants                       205                  291
     Other liabilities                    10,297                9,245
     Derivative financial
     instruments                           5,741                3,530
     Deferred tax
     liabilities                          51,682               56,013
Total non-current
liabilities                              350,986              324,086

     Loans and borrowings                  6,547                3,021
     Short term bank debt                 73,314               83,566
     Related party debt                    6,822                6,456
     Government grants                     4,307                8,360
     Other liabilities                    44,389               53,882
     Trade and other
     payables                            117,739              156,697
     Derivative financial
     instruments                           7,261               15,419
     Advance payments                     46,912               94,049
     Unearned revenue                     21,120               35,624
     Current taxes payable                27,682               14,708
     Provisions                           28,037               22,345
Total current liabilities                384,130              494,127
Total liabilities                        735,116              818,213
Total equity and liabilities           1,046,752            1,130,024



AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statement of cash flows



For the six months ended June 2009
In thousands of US Dollars                             2009      2008
                                                  Unaudited Unaudited
Cash flows (used in) / from operating
activities
(Loss) / Profit for the period                     (42,478)    46,328
Adjustments to reconcile profit to net cash
flows:
Non-cash:
   Depreciation and amortization                     17,367    12,570
   Restructuring expense                              4,090    13,245
   Environmental expense                                307        94
   Net finance costs                                  6,922     7,885
   Share of loss / (profit) of associates             1,400     (718)
   Equity-settled share-based payment
transactions                                         12,406     5,365
   Income tax expense                                13,434    22,793
Change in working capital and provisions           (11,798)  (79,749)
Other                                                 7,064   (6,435)
Interest paid, net                                  (6,256)   (3,468)
Income tax paid, net                                (3,596)   (9,660)
Net cash flows (used in) / from operating
activities                                          (1,138)     8,250

Cash flows used in investing activities
Proceeds from asset sales                                 3        24
Acquisition of associates, net of cash                    -  (62,854)
Acquisition of property, plant and equipment
and intangibles                                    (33,318)  (56,504)
Change in short-term investments                        (1)    14,958
Related party loans                                     931   (3,668)
Change in restricted cash                             1,133   (7,716)
Change in accounts payable included in capital
expenditures                                       (11,315)     (468)
Other                                                    21      (52)
Net cash flows used in investing activities        (42,546) (116,280)

Cash flows from financing activities
Proceeds from issuance of debt                       12,674    22,402
Repayment of borrowings                            (12,682)    20,897
Capital infusion                                      7,908      (39)
Other                                                   272       184
Net cash flows from financing activities              8,172    43,444

Net (decrease) in cash and cash equivalents        (35,512)  (64,586)
Cash and cash equivalents at January 1              143,473   172,558
Effect of exchange rate fluctuations on cash
held                                                  2,119     5,390
Cash and cash equivalents at June 30                110,080   113,362


The full press release including tables can be downloaded from the following link:

AMG reports second quarter results: http://hugin.info/138060/R/1334107/316557.pdf


This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



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