Shares in Aurubis plummeted by as much as 8.8% on Monday after the company, Europe’s largest copper producer, reported third-quarter earnings that fell short of market expectations. Despite a five-fold increase in earnings before tax (EBT) to €90 million ($98 million) from the same period last year, which had been marred by a significant metals theft, the results were below analysts’ forecast of €99 million.
Comparing with two years ago, earnings were down by 13%. The custom smelting and products segment also saw a 13%decline in EBT, registering €82 million, while revenue for the smelting business decreased by 7% compared to the same period in 2021-22.
One trader expressed concerns that the current full-year EBT expectation of €467 million may be “rather optimistic” given the results. He noted that robust metal prices should have mitigated the impact of a major maintenance shutdown in Hamburg, which concluded in July.
While copper prices have dropped by about 18% from their peak in May, they remain relatively high. However, weak economic indicators from the US and China have pressured prices. Metzler analyst Thomas Schulte-Vorwick attributed the earnings miss to higher-than-anticipated costs from the Hamburg shutdown and the launch of a new plant in the United States.
Aurubis reiterated its full-year EBT guidance of €380-480 million and highlighted that this was their best-ever quarterly result during a major plant shutdown. However, the company’s future performance could heavily depend on copper prices, with weak production in the US and China posing significant risks.
