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Europe’s largest copper producer Aurubis guided for lower earnings next financial year on Monday as it expects metal prices to fall, and after hurdles with a production ramp-up hit its fourth-quarter earnings.
Aurubis shares fell by 8% at 1435 GMT following the news.
Inflated start-up costs for strategic projects, especially for a new recycling plant in Richmond, US, have also weighed on next year’s outlook.
The German company previously shut down its main plant in Hamburg for maintenance for months, in order to increase production and make it more climate-friendly.
But the subsequent ramp-up dragged on due to some technical challenges, Aurubis said in a press release, without giving details.
The delay has weighed on output, resulting in lower-than-expected incomes from treatment and refining charges for concentrates, recycling materials and sulfuric acid, it added.
Aurubis sees earnings before taxes (EBT) in the range of 300-400 million euros ($333-445 million) in the 2024-2025 period, down from 380-480 million euros it has guided for 2023-2024.
According to preliminary results, EBT came in at 75 million euros in the fourth quarter, while in the same period last year it stood at 92 million euros.
The Aurubis financial year ends on Sept. 30 and the company is due to release final results on Dec. 5.
($1 = 0.8983 euros)
(By Andrey Sychev; Editing by Matthias Williams and Hugh Lawson)
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