General statement on the future development of the Aurubis Group

For 2018 annual contracts, the market conditions for copper concentrates weren’t fixed at the time of reporting.

  • In fiscal year 2017/18, the market trend for copper scrap and sulfuric acid continues to be difficult to forecast due to the short-term nature of the business.
  • The 2018 copper premium of US$ 86/t is unchanged from the previous year.
  • We expect stable-to-good copper product demand based on industry forecasts.
  • We expect an additional € 30 million (minimum) from the efficiency enhancement program, which is associated with ongoing optimizations at all sites.
  • We expect high plant availability for fiscal year 2017/18.

Beginning with fiscal year 2017/18, we will report in both the Metal Refining & Processing and the Flat Rolled Products Segments, in accordance with the new organization. For forecasting purposes, the operating earnings and operating ROCE from the past fiscal year 2016/17 were transferred from the old segmentation to the new segmentation.

In the Metal Refining & Processing Segment, we expect operating EBT at the previous year’s level for fiscal year 2017/18 (fiscal year 2016/17: € 334 million) and a slightly lower operating ROCE, compared to the previous year (fiscal year 2016/17: 20.8 %).

In the Flat Rolled Products Segment, we expect significantly higher operating EBT for fiscal year 2017/18 (fiscal year 2016/17: € 2 million) and a slightly higher operating ROCE, compared to the previous year (fiscal year 2016/17: 0.7 %).

Overall, we expect operating EBT at the previous year’s level and a slightly lower operating ROCE for the Aurubis Group in fiscal year 2017/18 compared to the reporting year.

 

Qualified comparative forecast according to Aurubis’ definition for the operating ROCE

T 025
 
  Delta ROCE
as a percentage
   
At prior-year level ± 0 to 1.0
Slight ± 1.1 to 4.0
Significant > ± 4.0

Qualified comparative forecast according to Aurubis’ definition for operating EBT

T 026
 
   Change in
operating EBT
   
At prior-year level ± 0 to 5.0 %
Slight ± 5.1 to 15.0 %
Significant > ± 15.0 %

The definitions for the qualified comparative prognoses were adjusted in comparison with the previous year. In our view, the adjusted definitions take into consideration the fluctuations of our business more accurately than previously. The previously valid definitions can be found in our past financial reports.

Forward-looking statements
This document contains forward-looking statements about our current forecasts of future events. Words such as “anticipate,” “assume,” “believe,” “predict,” “expect,” “intend,” “can/could,” “plan,” “project,” “should” and similar terms indicate such forward-looking statements. These statements are subject to a number of risks and uncertainties. Some examples include unfavorable developments in the global economic situation, especially political developments in the USA, Europe and China, a tightening of the raw material supply and a decline in demand in the main copper sales markets. Further risks include a deterioration of our refinancing options on the credit and finance markets, unavoidable events beyond our control such as natural disasters, acts of terror, political unrest and industrial accidents, and their effects on our sales, purchasing, production and financing activities, changes in exchange rates, a drop in acceptance for our products resulting in impacts on the establishment of prices and the utilization of processing and production capacities, price increases for energy and raw materials, production interruptions due to material bottlenecks, employee strikes or supplier bankruptcies, successful implementation of measures to reduce costs and enhance efficiency, the business outlook for our significant holdings, the successful implementation of strategic cooperation and joint ventures, amendments to laws, ordinances and official regulations, as well as the outcomes of legal proceedings and other risks and uncertainties, some of which are described in the Risk and Opportunity Report in this Annual Report. If one of these uncertainties or difficulties occurs, or if the assumptions underlying the forward-looking statements prove to be wrong, the actual results could deviate considerably from the results mentioned or implicitly expressed in these ­statements. We do not intend, nor do we assume the obligation, to update forward-looking statements continuously, as these statements are based solely on the circumstances on the day of publication.