By Bernadette Hogg (Reuters) -Aurubis on Tuesday reported higher-than-expected core profit for the first nine months of its 2024-2025 financial year, helped by higher contributions from sulfuric acid,
Aurubis Surpasses Earnings Expectations Amid Tight Copper Supply
Aurubis Financial Performance Overview
By Bernadette Hogg
Earnings and Profitability Metrics
(Reuters) -Aurubis on Tuesday reported higher-than-expected core profit for the first nine months of its 2024-2025 financial year, helped by higher contributions from sulfuric acid, copper products and precious metals.
Impact of U.S. Tariffs on Exports
Europe's largest copper producer said operating earnings before tax fell to 286 million euros ($330.44 million) in the first nine months of its financial year from 333 million euros a year earlier. That beat analysts' expectations of 281 million euros in a company-provided poll.
Future Outlook and Investments
Aurubis said it expected the higher contributions from sulfuric acid, copper products and metals to continue for the rest of year, but that it also expected a continued tight supply of copper concentrates and recycling materials.
The company narrowed its forecast for the 2024-2025 financial year and now expects operating earnings in the middle of a range between 330 million euros and 370 million euros, from a previous range of 300 million euros to 400 million euros.
Aurubis also updated its guidance for operating return on capital employed, a metric for analysing profitability, to 8% to 10% from 7% to 11% previously.
The United States said on July 30 that a 50% tariff on copper pipes and wiring would kick in in August, a less wide-ranging restriction than expected.
The move sent Comex copper futures tumbling as the tariffs excluded copper cathodes, concentrates and scrap.
Aurubis' exports to the U.S. include products such as wire rod, shapes and flat rolled products, a spokesperson told Reuters, though direct exports to the U.S. account for less than 1% of total revenues.
Aurubis will be ramping up its copper recycling smelter in the U.S. this year, with potential for further investment in coming years.
"With our investment in Aurubis Richmond, we are becoming part of the domestic copper industry, that the U.S. administration intends to strengthen," a spokesperson said.
($1 = 0.8655 euros)
(Reporting by Bernadette Hogg; Editing by Matt Scuffham)
