AMAG Austria Metall AG Reports Impairment Impact on 2024 EBIT

AMAG Austria Metall AG has announced an adjustment in its earnings before interest and taxes (EBIT) for the fiscal year 2024 due to impairment charges. These charges are specific to the company's Rolling Division and its German production facilities, AMAG components Übersee GmbH and AMAG components Karlsruhe GmbH. These facilities are primarily involved in manufacturing aircraft components.

The changes will result in an estimated reduction of EUR 15 million in EBIT, leading to a revised EBIT range of EUR 55 million to EUR 75 million for 2024. Despite these impairment charges, the company's EBITDA forecast remains steady between EUR 160 million and EUR 180 million. The non-cash nature of the impairment ensures it does not affect the EBITDA figure.

Factors such as rising production costs, fixed-price contracts, a challenging economic environment, and international competition have been cited as reasons for the impaired profitability prospects.