Europe's largest copper producer and recycler Aurubis AG recorded a downturn in earnings for the first quarter of fiscal 2015/16. Despite a market environment that "was satisfactory overall", preliminary figures showed the company's operating earnings before taxes (EBT) falling to €36m from €39m a year ago, and therefore below the capital market's expectations. The weak copper scrap market was one of the factors having a negative impact on the results, according to Aurubis.
"In particular, weak scrap markets and a lower metal yield in connection with reduced precious metal prices were the factors that strained the first quarter results", commented Aurubis interim executive board chairman Erwin Faust. On the other hand, "good treatment and refining charges for copper concentrates, a high cathode output with satisfactory cathode premiums and good sales on the wire rod markets had a supportive impact", as did the continuing strength of the US dollar.
The Hamburg, Germany-based firm nevertheless finds its forecast for the entire 2015/16 fiscal year (1 October – 30 September) to still be realistic. "Compared to the record earnings in the previous year, Aurubis will generate significantly lower but still satisfactory earnings", said Mr Faust. The complete first quarter report is planned for release on 10 February.