AMG reports fourth quarter and full year 2010 results

3/16/2011, 7:01 AM (Source: GlobeNewswire)
Key Highlights
* Revenue was  $270.7 million in the fourth quarter 2010, a 17% increase over
the same period in 2009; full year revenue was $990.5 million, a 14%
increase over 2009
* EBITDA[1] was $20.2 million in the fourth quarter 2010, a 62% increase over
the same period in 2009; full year EBITDA was $84.9 million, a 23% increase
over the full year 2009
* EPS on a fully diluted basis was $0.46 in the fourth quarter 2010; full year
EPS, was $0.09; excluding Timminco, EPS improved to $0.10 in Q4 2010, up
from $0.03 in Q4 2009; full year EPS excluding Timminco was $0.52
* The Advanced Materials Division generated revenue of $168.9 million and
EBITDA of $7.7 million in Q4 2010; full year revenue and EBITDA was $616.3
million and $39.8 million, respectively
* The Engineering Systems Division generated revenue of $67.7 million and
EBITDA of $10.0 million in Q4 2010; full year revenue and EBITDA was $245.7
million and $37.5 million, respectively
* Graphit Kropfmühl generated revenue of $34.2 million and EBITDA of $2.5
million in Q4 2010; full year revenue and EBITDA was $128.6 million and $7.6
million, respectively
* As of 31 December 2010, cash on the balance sheet was $89.3 million, net
debt was $147.8 million



Amsterdam, 16 March 2011 (Regulated Information) --- AMG Advanced Metallurgical
Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported fourth quarter 2010
revenue of $270.7 million a 17% increase from $231.4 million in the fourth
quarter 2009.

EBITDA increased 62% to $20.2 million in the fourth quarter 2010 from $12.4
million in the fourth quarter 2009.  Net income attributable to shareholders for
the fourth quarter 2010 was $12.5 million, or $0.46 per fully diluted share.
Net loss attributable to shareholders for the fourth quarter 2009 was ($30.2)
million, or ($1.13) per fully diluted share.  Excluding AMG's share of
Timminco's net income in the fourth quarter, AMG's net income attributable to
shareholders for the fourth quarter 2010 was $2.4 million, or $0.10 per fully
diluted share compared to $800 thousand, or $0.03 per fully diluted share in
2009.

Full year 2010 revenue increased 14% to $990.5 million, from $867.4 million in
2009.  EBITDA increased 23% to $84.9 million in 2010 compared with $69.1 million
in 2009.  Net income attributable to shareholders for the full year 2010 was
$2.4 million, or $0.09 per fully diluted share.  Excluding AMG's portion of
Timminco's net loss, AMG's net income attributable to shareholders for the full
year 2010 was $13.9 million, or $0.52 per fully diluted share.  Net loss
attributable to shareholders for continuing operations for the full year 2009,
excluding AMG's portion of Timminco's net loss, was ($10.6) million, or ($0.39)
per fully diluted share.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, commented:
"2010 was a transition year.  Our primary end markets of Aerospace, Energy,
Infrastructure and Specialty Metals and Chemicals began to rebound from the
global financial crisis.  AMG's portfolio approach to specialty metals acted as
a stabilizer in 2010 as the Advanced Materials division saw significant
improvement in pricing and demand for its products.  Although the Engineering
Systems division entered 2010 with a low order backlog, the market for vacuum
systems improved substantially in the second half of the year after reaching a
bottom in mid-year.  Graphit Kropfmühl's performance also improved in the second
half of 2010, driven by the energy and specialty chemicals markets.  The
improvement in market conditions experienced in the second half of 2010 and our
investments in tantalum, antimony and aluminium master alloys position the
business for revenue and EBITDA growth in 2011."

[1] EBITDA is defined as earnings before interest, tax, depreciation and
amortization and excludes nonrecurring items


Key Figures

In 000's US Dollar

  Q4 '10 Q4 '09 Change   FY '10 FY '09 Change



Revenue $270,731 $231,388 17%   $990,495 $867,447 14%
--------------------------------------------------------------------------------
Gross profit 49,382 46,354 7%   178,558 165,587 8%

Gross margin 18.2% 20.0%     18.0% 19.1%


--------------------------------------------------------------------------------
Operating income (loss) 6,323 1,840 244%   43,259 20,561 110%

Operating margin 2.3% 0.8%     4.4% 2.4%



Net income (loss) 12,481 (30,227) N/A   2,414 (75,642) N/A
attributable to shareholders
--------------------------------------------------------------------------------


EPS- Fully diluted $0.46 ($1.13)     $0.09 ($2.82)

Adjusted EPS-Fully $0.10 $0.03     $0.52 ($0.39)
diluted[1]



EBIT[2] 12,917 6,165 110%   59,866 45,370 32%

EBITDA[3] 20,171 12,432 62%   84,875 69,128 23%

EBITDA margin 7.5% 5.4%     8.6% 8.0%
--------------------------------------------------------------------------------
Notes:

[1] Adjusted to exclude all Timminco results including equity gains (losses)
which accounted for $0.36 in EPS in Q4 2010
[2] EBIT is defined as earnings before interest, tax and excludes nonrecurring
items
[3] EBITDA is defined as earnings before interest, tax, depreciation and
amortization and excludes nonrecurring items

Operational Review - Fourth Quarter 2010


Advanced Materials Division

  Q4 '10 Q4 '09 Change
-----------------------------------------------------
Revenue $168,863 $124,306 36%

Gross profit 24,265 20,827 17%
Operating income 1,432 689 108%

EBITDA 7,738 5,331 45%

Capital expenditures 7,321 4,983 47%



The Advanced Materials division's fourth quarter 2010 financial results were
driven by a rebound in the aerospace, specialty metal and chemical and energy
industries.  Revenue increased by $44.6 million, or 36%, to $168.9 million.  The
increase in revenue was driven by price increases in most products and in
particular by antimony and chrome metal, with reference prices increasing by
70% and 31%, respectively. While prices improved across most products, volume
growth was uneven.  Ferrovanadium and chrome metal volumes increased by 30% and
6%, respectively however volumes for antimony decreased by 11% during the fourth
quarter 2010 compared to the fourth quarter 2009.

The fourth quarter 2010 gross margin of 14% of revenue declined from 17% of
revenue in the fourth quarter 2009 due to unfavourable changes in product mix.
Specifically, significant increases in revenue from lower margin aluminium
products more than offset increased economies of scale, resulting in lower gross
margins despite the increase in revenue.

Fourth quarter 2010 EBITDA increased by $2.4 million to 5% of revenue from 4% of
revenue in 2009, due to the increase in gross profit and a 1% decrease in SG&A
compared to the same period in the prior year.

Capital expenditures were $7.3 million for the quarter, 47% more than the fourth
quarter 2009.  The primary growth capital investments made in the fourth quarter
involved the expansion of the ferrovanadium logistics facility and production
facilities for coatings used in solar thin films.


Engineering Systems Division

  Q4 '10 Q4 '09 Change
---------------------------------------------------
Revenue $67,676 $73,809 (8%)

Gross profit 20,946 22,415 (7%)
Operating income 7,041 1,542 357%

EBITDA 9,963 5,895 69%

Capital expenditures 4,911 2,988 64%



Despite an increase in order intake compared to the fourth quarter 2009 and the
third quarter 2010, the Engineering Systems division's fourth quarter 2010
revenue was adversely impacted by the low order backlog level with which the
division began the current quarter.  The order backlog was $183.3 million as of
December 31, 2010, up 25% from $147.1 million on September 30, 2010.  The
division generated order intake of $107.6 million in the fourth quarter 2010, a
1.59x book to bill ratio and a 129% increase compared to the fourth quarter
2009.   Order intake for the solar industry improved 254% from the same period
in 2009, accounting for 38% of total order intake. Demand for vacuum furnaces
for specialty steel used in aerospace and energy also increased substantially
compared to the same period in the prior year.  The Division's current order
backlog consists of a diversified mix of remelting systems and induction casting
systems for the titanium and specialty steel industries, solar crystallisation
systems and vacuum heat treatment furnaces.

Fourth quarter 2010 revenue decreased by $6.1 million, or 8%, compared to the
same quarter in 2009.  The revenue decrease was primarily due to the lower order
backlog level at the beginning of the quarter compared to the opening order
backlog level in the fourth quarter 2009.  Sales of solar silicon DSS furnaces
for the photovoltaic industry decreased 44% in the fourth quarter 2010 compared
to the same period in 2009.  During the fourth quarter 2010, 30% of revenue was
generated from sales of solar silicon furnaces, down from 49% in fourth quarter
2009.  Revenue from remelting systems, primarily for the aerospace and specialty
steel industries, increased by 3% in the fourth quarter 2010 while the Own and
Operate business increased revenue by 22%.

Gross margin was 31% of revenue in the fourth quarter 2010, up slightly from
30% of revenue in the same period in the prior year.  The increase in the gross
margin was due to favourable changes in product mix.

Fourth quarter 2010 EBITDA was $10.0 million, a 69% increase over the same
period in 2009.  The EBITDA margin increased to 15% in the fourth quarter 2010
compared to 8% for the same period in the prior year.  The EBITDA margin
increase was attributable to higher gross margin and a 30% reduction in SG&A
primarily due to recovery of a bad debt and a decrease in research and
development expenses.

Capital expenditures increased to $4.9 million in the fourth quarter 2010, 64%
more than the fourth quarter 2009.  This increase was a result of the
expenditures related to the heat treatment services facility in Mexico during
the fourth quarter 2010.


Graphit Kropfmühl

  Q4 '10 Q4 '09 Change
---------------------------------------------------
Revenue $34,192 $33,273 3%

Gross profit 4,171 3,112 34%
Operating loss (2,150) (391) 450%

EBITDA 2,470 1,206 105%

Capital expenditures 1,687 762 121%



Increasing volumes for both silicon metal and natural graphite resulted in
improved revenues and EBITDA for Graphit Kropfmühl ("GK") during the fourth
quarter 2010.  Fourth quarter 2010 revenue increased $900 thousand, or 3%,
compared to the same quarter in 2009.  Natural graphite revenue increased $1.6
million, or 16%, driven by increases in both volumes and pricing.  This
increase, however, was muted by a $700 thousand, or 3%, decrease in silicon
metal revenue due to lower contract prices more than offsetting high volumes.

Gross margin improved to 12% of revenue in the fourth quarter 2010 from 9% in
the same period in the prior year.  The fourth quarter 2010 gross profit was
positively impacted by higher natural graphite end market prices and lower per
unit production costs.

Fourth quarter 2010 EBITDA was $2.5 million, a 105% increase compared to the
fourth quarter 2009.  The EBITDA margin increased to 7% in the fourth quarter
2010 up significantly from 4% in the same period of the prior year.  The overall
EBITDA margin increase was attributable to increased natural graphite gross
margin and a 3% decrease in SG&A expenses, slightly offset by lower contract
prices for silicon metal.

Capital expenditures increased to $1.7 million for the fourth quarter
2010, 121% more than the same period 2009.  The increase in capital expenditures
was due to expansion of the high purity natural graphite production facility to
meet increased market demand.


Timminco

AMG's ownership in Timminco was 42.5% as of December 31, 2010. AMG accounts for
its investment in Timminco via the equity accounting method.  Timminco's income
for the fourth quarter 2010 is included in share of income from associates on
AMG's income statement and the carrying value of AMG's investment in Timminco of
$17.7 million is listed as an asset on AMG's balance sheet.  During the fourth
quarter, Timminco sold 49% of its silicon metal operation to Dow Corning for
$40.3 million in cash and up to an additional $10.0 million based upon hitting
incentive targets.  Timminco used the proceeds of this transaction to repay all
of its senior bank debt.  Additional information on Timminco and its fourth
quarter 2010 financial statements can be found at www.Timminco.com.


Operational Review - Year 2010

Advanced Materials Division

  FY '10 FY '09 Change
--------------------------------------------------------
Revenue $616,267 $429,083 44%

Gross profit 94,749 47,866 98%
Operating income (loss) 20,678 (28,761) N/A

EBITDA 39,823 (36) N/A

Capital expenditures 20,484 11,546 77%



Advanced Materials' 2010 revenue increased by $187.2 million, or 44%, from
2009, to $616.3 million.  This was a direct result of increases in average
selling prices and volumes for many products, most notably for antimony and
titanium alloys.

Gross margin increased to 15% in 2010 from to 11% in 2009.  2010 Gross profit
increased by $46.9 million, or 98%, from 2009, to $94.7 million due to higher
average selling prices and an increase in volumes of products, such as
ferrovanadium, chrome metal and aluminium master alloys and powders.  The
increase in gross profit was driven by increases in end product prices for
specialty metals products in which the Division is naturally long, such as
antimony and ferrovanadium.

2010 EBITDA increased to $39.8 million, or 6%, of revenue due to the increase in
gross profit, slightly offset by an increase in SG&A expenses.  SG&A expenses
increased 4% to $70.5 million in 2010 from $68.1 million in 2009 as a slight
decrease in direct costs was offset by an increase in corporate expenses.

Capital expenditures were $20.5 million in 2010, 77% more than 2009.  The
Division invested in growth capital expenditures in its ferrovanadium, tantalum
and aluminium operations during 2010 to in an effort to lower costs and increase
security of raw material supply.


Engineering Systems Division

  FY '10 FY '09 Change
-----------------------------------------------------
Revenue $245,652 $320,530 (23%)

Gross profit 70,119 105,776 (34%)
Operating income 22,916 48,015 (52%)

EBITDA 37,452 62,885 (40%)

Capital expenditures 7,877 6,735 17%



Engineering Systems' order intake for 2010 was $280.8 million, up 53% from
2009.  Despite this, the Engineering Systems' 2010 revenue decreased by $74.9
million, or 23%, from 2009, to $245.7 million as a result of a low order backlog
at the beginning of 2010 and time delay of that backlog turning into revenue.

Gross margin decreased from 33% in 2009 to 29% in 2010.  2010 Gross profit
decreased by $35.7 million, or 34%, from 2009 to $70.1 million due to the
significantly lower revenue particularly a 53% decline in solar silicon systems
revenue compared to 2009 and the resulting effect of diminished economies of
scale.

2010 EBITDA decreased by $25.4 million, or 40%, from 2009, to $37.5 million as a
result of the decrease in gross profit, slightly offset by a decrease in SG&A
expenses.  EBITDA margin decreased to 15% of revenue from 20% in 2009.  SG&A
expenses decreased by $11.5 million, or 20%, to $46.6 million as the Division
benefitted from a full year of the cost cutting measures implemented in late
2009.

Capital expenditures were $7.9 million in 2010, 17% more than 2009.  This
increase was a result of the expansion of the heat treatment services facility
in Mexico, which was completed during the fourth quarter 2010.


Graphit Kropfmühl

  FY '10 FY '09 Change
--------------------------------------------------------
Revenue $128,576 $117,834 9%

Gross profit 13,690 11,945 15%
Operating (loss) income (335) 1,307 N/A

EBITDA 7,600 6,279 21%

Capital expenditures 4,612 7,251 (36%)



GK's 2010 revenue increased by $10.7 million, or 9%, from 2009, to $128.6
million.  The increase was primarily driven by an increase in natural graphite
pricing and volumes.

Gross margin increased from 10% in 2009 to 11% in 2010.  2010 Gross profit
increased by $1.7 million, or 15%, from 2009 to $13.7 million due to a 47%
increase in gross profit in natural graphite. GK's improved gross profit was
primarily generated by higher prices and improved economies of scale from
natural graphite, slightly offset by a 17% decrease in silicon metal gross
profit.

2010 EBITDA increased by $1.3 million, or 21%, from 2009, to $7.6 million as a
result of the increase in gross profit, slightly offset by a $500 thousand
increase in SG&A.  EBITDA margin increased to 6% of revenue from 5% in 2009.

Capital expenditures were $4.6 million in 2010, 36% less than 2009.  This
decrease was a result of the reduction in capital spending on silicon furnace
expansion in 2010 compared to 2009 and the completion of the relocation and
upgrading of certain natural graphite production activities in early 2010.


Financial Review

Taxes

AMG recorded a tax expense of $11.2 million in the year ended December 31, 2010
as compared to a tax expense of $15.2 million in the year ended December
31, 2009.  Excluding losses in associates, for which AMG cannot recognize a tax
benefit since these companies are not consolidated, AMG's effective tax rate was
34.2% for 2010.


Liquidity

  December 31, 2010 December 31, 2009 Change
--------------------------------------------------------------------------------
Total debt $237,089 $203,796 16%

Cash & short-term investments 89,311 117,016 (24%)
--------------------------------------------------------------------------------
Net debt 147,778 86,780 70%



AMG had a net debt position of $147.8 million as of December 31, 2010. AMG's net
debt position increased $61.0 million since December 31, 2009 due to $35.4
million of cash tax payments, $9.7 million investment in Timminco, $33.0 million
in capital investments, a $17.2 million investment in the antimony mine in
Turkey, a $4.0 million acquisition of Mono(2) solar technology and a $45.2
million increase in working capital due to increasing material costs and
provisions, reduced by EBITDA of $84.9 million.


Cash Flow

  Twelve Months Ended

  December '10 December '09
------------------------------------------------------------------------------


Operating cash flows used in continuing operations $(1,623) $16,368

Operating cash flows used in discontinued operations - (18,459)
------------------------------------------------------------------------------
Net cash flows used in operations (1,623) (2,091)
------------------------------------------------------------------------------
Capital expenditures (32,973) (25,532)

Acquisitions, net of cash (20,154) -

Investment in associates (10,765) (28,943)

Cash flows used in discontinued operations - (32,039)

Cash flows (used in) from other investing 1,320 (3,667)
------------------------------------------------------------------------------
Net cash flows used in investing activities (62,572) (90,181)
------------------------------------------------------------------------------
Financing cash flows from continuing operations 42,352 15,060

Financing cash flows from discontinued operations - 47,578
------------------------------------------------------------------------------
Cash flows generated from financing activities 42,352 62,638
------------------------------------------------------------------------------


Cash flows used in operations were $1.6 million during 2010 as compared to $2.1
million in 2009.  The cash flows used in operations during 2010 are a result of
$35.4 million in cash tax payments as well as a $45.2 million increase in
working capital and provisions, offset by $84.9 million in EBITDA.  The
substantial cash tax payments are partially due to the difference between IFRS
percentage of completion accounting as compared to completed contract
methodology for tax payments.

Cash used in investing activities was $62.6 million during 2010.  This decrease
of $27.6 million from 2009 is composed of an $18.2 million decrease in
investments in associates, primarily Timminco, and a $32.0 million decrease in
cash flows used by Timminco, which was classified as a discontinued operation in
2009, slightly offset by a $7.4 million increase in capital investments and a
$20.2 million increase in acquisitions.  The Company invested $16.5 million to
acquire a Turkish antimony mine and $3.7 million to acquire the Mono(2) solar
technology during 2010.

Cash generated from financing activities during 2010 was $42.4 million, a $20.3
million decrease from 2009.  This decrease was primarily attributable to cash
flows from discontinued operations recognized in 2009 that are not applicable in
2010, offset by $42.4 million in draws on the revolving lines of credit, which
were primarily used to fund the acquisition of the Turkish antimony mine.


Outlook

AMG improved its market position for a number of materials and metals
technologies used in the end markets of Aerospace, Energy, Infrastructure and
Specialty Metals during 2010. These activities combined with improving markets
should generate continued revenue and earnings growth in 2011.  The Advanced
Materials division's acquisition of the antimony mine and smelter, cost
reductions made in the aerospace master alloys and coatings products, the
acquisition of aluminium alloy producer KB Alloys, LLC and rising prices and
demand for tantalum and aerospace master alloys should yield double digit
percentage revenue growth for this division in 2011.  The Engineering Systems
division began 2011 with a 13% larger order backlog than it began 2010 due to
improved demand in the specialty steel and solar industries.  This should result
in a revenue growth rate during 2011 similar to the current increase in order
backlog; however, margin pressure may increase.  We expect strengthening demand
for natural graphite and improved pricing to result in revenue growth at Graphit
Kropfmühl in 2011.  The growth in revenue across all business segments combined
with ongoing capital investments to improve efficiencies should result in an
increased EBITDA margin in 2011.


Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement

For the year ended December 31

In thousands of US Dollars 2010 2009

Continuing operations

Revenue 990,495 867,447

Cost of sales 811,937 701,860

Gross profit 178,558 165,587



Selling, general and administrative expenses 128,934 137,537

Restructuring expense 423 7,782

Asset impairment expense 602 1,718

Environmental expense 6,421 3,998

Other expenses 260 173

Other income (1,341) (6,182)

Operating  profit 43,259 20,561



Finance expense 18,727 18,419

Finance income (5,429) (3,587)

Foreign exchange (gain) loss (2,799) 2,418

Net finance costs 10,499 17,250



Share of  loss of associates (19,405) (31,958)

Profit (loss) before income tax 13,355 (28,647)



Income tax expense 11,207 15,205

Profit (loss) for the year from continuing operations 2,148 (43,852)



Loss after tax for the year from discontinued operations - (54,378)

Profit (loss) for the year 2,148 (98,230)



Attributable to:

  Shareholders of the Company 2,414 (75,642)

  Non-controlling interests (266) (22,588)

    2,148 (98,230)

Earnings (loss) per share

Basic earnings (loss) per share 0.09 (2.82)

Diluted earnings (loss) per share 0.09 (2.82)

Earnings (loss) per share from continuing operations

Basic earnings (loss) per share from continuing operations 0.09 (1.77)

Diluted earnings (loss) per share from continuing
operations 0.09 (1.77)




Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement

For the three months ended December 31

In thousands of US Dollars 2010 2009

Continuing operations

Revenue 270,731 231,388

Cost of sales 221,349 185,034

Gross profit 49,382 46,354



Selling, general and administrative expenses 36,765 42,605

Restructuring expense 417 2,087

Asset impairment expense 602 1,718

Environmental expense 5,658 (164)

Other expenses 248 65

Other income (631) (1,797)

Operating  profit 6,323 1,840



Finance expense 2,966 2,538

Finance income (2,459) (970)

Foreign exchange loss 1,535 2,594

Net finance costs 2,042 4,162



Share of  income (loss) of associates 7,569 (29,273)

Profit (loss) before income tax 11,850 (31,595)



Income tax benefit (110) (2,436)

Profit (loss) for the period from continuing operations 11,960 (29,159)



Profit after tax for the period from discontinued
operations - 202

Profit (loss) for the period 11,960 (28,957)



Attributable to:

  Shareholders of the Company 12,481 (30,227)

  Non-controlling interests (521) 1,270

    11,960 (28,957)

Earnings (loss) per share

Basic earnings (loss) per share 0.46 (1.13)

Diluted earnings (loss) per share 0.46 (1.13)

Earnings (loss) per share from continuing operations

Basic earnings (loss) per share from continuing operations 0.46 (1.13)

Diluted earnings (loss) per share from continuing
operations 0.46 (1.13)




Unaudited
AMG Advanced Metallurgical Group N.V.

Consolidated Statement of Financial
Position



As at December 31

In thousands of US Dollars   2010 2009

Assets

  Property, plant and equipment   228,612 211,022

  Intangible assets   27,002 28,253

  Investments in associates   25,186 34,794

  Derivative financial instruments   5,199 1,718

  Deferred tax assets   22,107 10,912

  Restricted cash   12,528 13,263

  Notes receivable   322 5,542

  Other assets   15,372 11,980

Total non-current assets   336,328 317,484

  Inventories   207,204 193,378

  Trade and other receivables   175,421 147,787

  Derivative financial instruments   5,731 4,954

  Other assets   41,080 30,359

  Cash and cash equivalents   89,311 117,016

Total current assets   518,747 493,494

Total assets   855,075 810,978



Equity

  Issued capital   741 725

  Share premium   381,636 379,518

  Other reserves   36,158 31,284

  Retained earnings (deficit)   (196,481) (198,897)

Equity attributable to shareholders of the
Company 222,054 212,630



Non-controlling interests   11,911 15,793



Total equity   233,965 228,423



Liabilities

  Loans and borrowings   187,813 168,319

  Employee benefits   88,372 91,358

  Provisions   20,607 14,862

  Government grants   642 669

  Other liabilities   5,517 7,984

  Derivative financial instruments   698 1,339

  Deferred tax liabilities   25,436 26,395

Total non-current liabilities   329,085 310,926



  Loans and borrowings   4,254 3,464

  Short term bank debt   45,022 32,013

  Government grants   175 234

  Other liabilities   43,287 46,179

  Trade and other payables   102,253 69,791

  Derivative financial instruments   1,754 6,048

  Advance payments   49,597 54,764

  Current taxes payable   24,979 36,050

  Provisions   20,704 23,086

Total current liabilities   292,025 271,629

Total liabilities   621,110 582,555

Total equity and liabilities   855,075 810,978





Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows

For the year ended December 31

In thousands of US Dollars 2010 2009

Cash flows used in operating activities

Loss for the period from continuing operations 2,148 (43,852)

Loss for the period from discontinued operations - (54,378)

Loss for the period 2,148 (98,230)

Adjustments to reconcile loss to net cash flows:

Non-cash:

   Depreciation and amortization 25,009 23,758

   Restructuring expense 423 7,782

   Asset impairment expense 602 1,718

   Environmental expense 6,421 3,998

   Net finance costs 10,499 17,250

   Share of loss of associates 19,405 31,958

   Loss on sale or disposal of property, plant and equipment 262 6,253

   Equity-settled share-based payment transactions 6,362 13,729

   Cash-settled share-based payment transactions 1,964 3,605

   Income tax expense 11,207 15,205

Working capital adjustments

   Change in inventories (23,774) 45,338

   Change in trade and other receivables (40,033) (564)

   Change in prepayments (12,248) 12,490

   Change in trade payables, provisions, and other
liabilities 35,488 (97,919)

   Change in government grants (17) (7,783)

   Other 3,936 5,934

Interest paid (15,334) (15,289)

Interest received 1,496 2,468

Income tax paid, net (35,439) (9,711)

Cash flows  from discontinued operations - 35,919
--------------------
Net cash flows used in operating activities (1,623) (2,091)



Cash flows used in investing activities

Proceeds from sale of property, plant and equipment 983 129

Acquisition of subsidiaries (net of cash acquired of nil) (20,154) -

Acquisition of property, plant and equipment and intangibles (32,973) (25,532)

Related party loans 264 (5,262)

Investments in/acquisition of associates (10,765) (28,943)

Change in restricted cash 151 1,410

Other (78) 56

Cash flows used in discontinued operations - (32,039)
--------------------
Net cash flows used in investing activities (62,572) (90,181)

Cash flows from financing activities

Proceeds from issuance of debt   45,546 30,175

Repayment of borrowings   (3,432) (15,785)

Other   238 670

Cash flows from discontinued operations   - 47,578
------------------
Net cash flows from financing activities   42,352 62,638
------------------


Net decrease in cash and cash equivalents   (21,843) (29,634)

Cash and cash equivalents at January 1   117,016 143,473

Effect of exchange rate fluctuations on cash held   (5,862) 3,177
------------------
Cash and cash equivalents at December 31   89,311 117,016



About AMG

AMG creates and applies innovative metallurgical solutions to support the global
trend of sustainable development of natural resources and CO(2) reduction.  AMG
produces highly engineered specialty metal products and advanced vacuum furnace
systems for the Energy, Aerospace, Infrastructure and Specialty Metals and
Chemicals end markets.  AMG consists of two operating divisions, Advanced
Materials and Engineering Systems, and owns interests in publicly-listed
companies Graphit Kropfmühl AG (Deutsche Börse: GKR.DE) and Timminco Limited
(TSX: "TIM").

The Advanced Materials Division develops and produces specialty metals, alloys
and high performance materials. AMG is a significant producer of specialty
metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys
and additives, chromium metal and ferrotitanium, for Energy, Aerospace,
Infrastructure and Specialty Metal and Chemicals applications.  Other key
products include specialty alloys for titanium and superalloys, coating
materials, tantalum and niobium oxides, vanadium chemicals and antimony
trioxide.

The Engineering Systems Division designs, engineers and produces advanced vacuum
furnace systems and operates vacuum heat treatment facilities, primarily for the
Aerospace and Energy (including solar and nuclear) industries.  Furnace systems
produced by AMG include vacuum remelting, solar silicon melting and
crystallization, vacuum induction melting, vacuum heat treatment and high
pressure gas quenching, turbine blade coating and sintering.  AMG also provides
vacuum case-hardening heat treatment services on a tolling basis.

Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of
AMG.  Based on its secure raw material sources in Africa, China and Europe,
Graphit Kropfmühl is a specialist in the production of silicon metal and the
extraction, processing and refining of natural crystalline graphite for a wide
range of energy saving industrial applications.

Timminco Limited is a publicly listed affiliate of AMG. Timminco produces
silicon metal for the chemical, aluminum, electronic and solar industries.
Timminco also produces solar grade silicon, using its proprietary technology for
purifying silicon metal, for the solar energy industry.

With over 2,600 employees, AMG operates globally with production facilities in
Germany, the United Kingdom, France, Czech Republic, the United States, Canada,
Mexico, Brazil, and Sri Lanka and also has sales and customer service offices in
Belgium, Russia, China and Japan (www.amg-nv.com).


For further information please contact:

AMG Advanced Metallurgical Group N.V. +1 610 975 4901

Jonathan Costello

Vice President of Corporate Communications

jcostello@amg-nv.com



Disclaimer

Certain statements in this press release are not historical facts and are
"forward looking". Forward looking statements include statements concerning
AMG's plans, expectations, projections, objectives, targets, goals, strategies,
future events, future revenue or performance, capital expenditures, financing
needs, plans and intentions relating to acquisitions, AMG's competitive
strengths and weaknesses, plans or goals relating to forecasted production,
reserves, financial position and future operations and development, AMG's
business strategy and the trends AMG anticipates in the industries and the
political and legal environment in which it operates and other information that
is not historical information.  When used in this press release, the words
"expects," "believes," "anticipates," "plans," "may," "will," "should," and
similar expressions, and the negatives thereof, are intended to identify forward
looking statements. By their very nature, forward looking statements involve
inherent risks and uncertainties, both general and specific, and risks exist
that the predictions, forecasts, projections and other forward looking
statements will not be achieved. These forward looking statements speak only as
of the date of this press release.  AMG expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward looking
statement contained herein to reflect any change in AMG's expectations with
regard thereto or any change in events, conditions or circumstances on which any
forward looking statement is based.  Finally, statements of fact contained
herein reflect the facts as of the date of this press release.

The full press release including tables can be downloaded from the following
link:

AMG reports fourth quarter and full year 2010 results







This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: AMG Advanced Metallurgical Group N.V. via Thomson Reuters ONE

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