Copper company receives forecast
Aurubis quantifies damage from metal theft
September 19, 2023, 3:16 p.m
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The Hamburg copper manufacturer Aurubis has fallen victim to metal theft organized by gangs. After the inventory has been completed, the extent of the damage now becomes clear. The profit forecast is far lower than expected. And the major shareholder also has to make improvements.
The value of the metals stolen from the Hamburg copper manufacturer and recycling specialist Aurubis amounts to almost 200 million euros. An extraordinary inventory in the course of the theft and fraud cases showed that the shortage of precious metals had a negative impact on the operating result before taxes for the 2022/23 financial year by 185 million euros, the group announced. Aurubis expects that around 30 million euros will be able to partially compensate for the negative effects through insurance and additional seized assets.
Based on the extraordinary inventory, Aurubis significantly revised its forecast for the 2022/23 financial year downwards. Instead of an operating result of 450 million to 550 million euros, the group now only expects 310 million to 350 million euros. The company now forecast the return on capital employed at 8 to 12 percent – after 14 to 18 percent before the precious metal shortage. “We are working hard and closely with the investigative authorities to clarify the facts of the criminal activities,” said Aurubis boss Roland Harings. Among other things, external forensic specialists are on duty. At the same time, the level of protection will be increased.
The fraud was noticed during regular checks of the metal inventory. There were significant deviations from the target inventory as well as deviations in special samples of certain recycling deliveries. Aurubis assumes that manipulated samples with high levels of valuable metals were delivered, but that the actual deliveries then contained significantly less valuable metals – which ultimately led to excessive invoices being paid. Aurubis cannot yet say which suppliers are specifically affected. This is the subject of ongoing investigations.
Meanwhile, Aurubis’ major shareholder Salzgitter has also fallen into the wake of the profit warning. The group also corrected its forecast. For the 2023 financial year, Salzgitter is now targeting earnings before interest, taxes, depreciation and amortization (Ebitda) of 650 million to 700 million euros, it said. The group had previously promised 750 million to 850 million euros. The pre-tax result will be between 200 million and 250 million euros instead of between 300 million and 400 million euros, as previously assumed. Salzgitter holds 29.99 percent of Aurubis.