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Aurubis, the Germany-based copper smelter and semis producer, announced increased operating earnings before tax of €140M (US$188M) in the final quarter of 2012*, compared to €86M in the previous year (US$116M). Despite an improved group level performance, Aurubis noted weaknesses in its copper semis business, saying "sales volumes were down on the previous year due to weak markets." The company attributed the weak sales to poor demand from Southern Europe and a typical seasonal slowdown in Q4, however, the company noted a slightly better environment in North America. In their outlook for the coming year, Aurubis said they expect weak conditions to remain in Europe in the coming months, but expect stronger demand from North America and the Far East. The company said that they are experiencing slower demand for wire used in automotive harnesses but hope that wirerod will replace some of the current weakness. In other semis sectors, Aurubis expects better global demand for flat-rolled products and stronger appetite for copper shapes outside of Europe.

The German copper cathode and semis fabricator, Aurubis, has reported its concerns over the Federal Government's decision to phase out nuclear power. Aurubis said that the new legislative package, which involves the decommissioning of seven base load power plants, does not ensure that electricity will remain secure and affordable for the company. As such, it believes that power supply now represents a significant downside risk to its operations. In the event of a momentary power failure, the company would suffer a half-day cathode production loss. A sustained power shortage or blackout could cause substantial damage to plant equipment as liquid melts solidify. Aurubis said that steps were required to be taken to expand the power grid and increase power plant capacities. The company currently uses 1Bn KWh/y, approximately the same amount as 600,000 inhabitants.

Aurubis AG and Luvata Group have agreed a closing date for the sale of Luvata's rolled copper and brass products division (RPD). Aurubis originally expected the deal to close in August, however, delays in seeking regulatory approval has caused the date to slip to 1st September. Aurubis has received clearance from the US and Turkish regulatory authorities but is awaiting a response from the European Union's antitrust body. The early May agreement stated that Aurubis will pay the Net Working Capital of Luvata RPD at the time of closing, anticipated to be between EUR200 - 250M. The final price is subject to copper price movements and stock levels at Luvata RPD.

* Aurubis Group, the large German copper smelter and semis producer, announced on 13th December that its operating earnings before tax for the fiscal year Q4 2011-Q3 2012, had increased to EUR296M from EUR292M the previous year (US$385.5M from US$380.3M). Despite the headline increase in profitability, which was driven by the group's smelting unit, Aurubis reported that profits from "copper products were considerably down on the prior-year level due to weak markets for rod and shapes." Operating profits at the group's semis business fell to EUR10.1M this fiscal year from EUR49.7M the prior year (US$13.2M from US$64.7M), with Aurubis citing "the economic influences of the European debt crisis" as a factor weighing on the demand for copper products. Aurubis reported that copper tube output had fallen by 18% to 646,000t in 2011/2012 from 785,000t in 2010/11, copper continuous cast shapes output had fallen by 17% to 164,000t from 197,000t , whilst the output of flat rolled products fared better with output roughly unchanged at 217,000t.

Aurubis AG reported that its production of copper wirerod was down by 22% y-o-y and 14% q-o-q to reach 155,000t in Q2 2012, marking a faster decline from the 17% y-o-y fall in Q1 2012. The company said that the decrease in volumes was driven by slower demand from cable and enamelled wire producers. This came despite stronger demand from the automotive sector and signs of a pick-up in demand from the infrastructure sector in late Q2. Aurubis also produces copper and copper-alloy shapes, pre-rolled products, finished flat rolled products and speciality wire. Output of shapes fell by 25% y-o-y and 13% q-o-q to reach 41,000t in Q2, due to weak demand from semi-fabricators. However at Schwermetall, the company's 50%-owned subsidiary, production of pre-rolled strip decreased by only 5% y-o-y to reach 49,000t in Q2, as demand from semi-fabricators for this product held-up better. The year-on-year change in finished flat rolled products output was distorted by the acquisition of Luvata's rolled products division (RPD). However, volumes in the division did fall by 5% q-o-q reaching 57,000t in Q2, contributing towards across-the-board sequential declines for Aurubis' copper products output in Q2.

Aurubis has announced that it will reduce its production capacity of flat rolled copper products by 35,000t in a restructuring process that will take place beginning from H2 2013. The group intends to transfer some of its rolling operations from Finspång, Sweden to Zutphen in the Netherlands and is also considering moving other types of production currently located at the Finspång factory to its facility in Buffalo, USA. Aurubis attributed the consolidation to structural overcapacity in the flat rolled products market and made specific mention to declining demand in the engine cooling segment.

Aurubis said that demand for its products bottomed in April and showed some recovery signs in May. As a result of weakening demand in Q1, the company cut copper wirerod output by 25% to 168,000t. The company planned to cut working hours in its copper wirerod plant in Hamburg but the measure was not implemented as demand strengthened. Luvata reported that its copper semis sales contracted on average by 25% y-o-y in Q1. The worst hit end-use sectors were the automotive and construction industries, which plunged by 40% y-o-y in Q1. In response to the economic crisis, the company has cut production in the US, Europe and China. Both Aurubis and Luvata said that as their customers have kept stocks to a minimum the market now experiences stabilisation. Luvata highlighted that its recent demand increase may be only the result of restocking. Also, extended summer holidays will impact this rebound.

Aurubis AG, the Germany based copper producer and semi-fabricator, is expected to acquire Luvata RPD, the rolled products division of Luvata Group, in August 2011 following the companies' announcement that an acquisition agreement has been reached. Aurubis will pay the Net Working Capital of Luvata RPD at the time of closing, anticipated to be between EUR200 - 250M.

Aurubis AG, the Germany-headquartered refined copper cathode and copper products fabricator, reported a weak performance in sales of copper products in the first quarter of this year. In Q1, the outputs of wirerod; pre-rolled strip; continuous cast shapes; rolled products and speciality wire reached 179,000t, 41,000t, 47,000t and 60,000t, down by 17% y-o-y, down by 15% y-o-y, up by 2% y-o-y and up by 329% y-o-y, respectively. Generally, the seasonal upswing in Q2 was weaker than expected, however, there was a mixture of performances in the sectors within each market, as some wirerod market sectors ordered strongly but European semi-fabricators and customers of strip and speciality wire continued to order shrinking quantities at late notice.

Aurubis reported a growth outlook for its copper products business unit. The company said that the performance of copper wirerod depends upon the progress of power grid expansion projects in Europe. The automotive sector is expected to continue to support growing wirerod sales for the next few months, however the enamelled wire industry is expected to remain weak attributed to poor demand in southern Europe. North American demand is anticipated to support growth in shipments of copper shapes as well as the company's market for flat copper products. In this regard, the US electronics and electrical industry, engine cooling and distribution segments are expected to continue improving. Stagnant European and Asian demand for flat copper products will partially undermine growth in North America. The company added that it does not anticipate the Asian copper products market to recover until the end of Summer 2012, at which time, demand in the US is expected to be good and demand from European-based operations will be recovering.

Aurubis AG, a leading producer of unwrought copper and copper semis, announced its third quarter results. It reported pre-tax profits to have risen by 41% y-o-y to €111M and total net revenues of €3.294B, up by 32% y-o-y. The company produced 198,000t of copper wirerod, down by 6% y-o-y, whereas production of copper shapes was up by 10% y-o-y, amounting to 55,000t. Within this area, Aurubis' product mix is characterised by an increasing proportion of speciality products. The company noted cooling demand for its copper products during April to June 2011, attributed to seasonal factors.

Aurubis AG, the Germany head-quartered refined copper and copper products fabricator, expressed its interest in pursuing additional acquisitions overseas after recently completing its takeover of Luvata's Rolled Products Division. Aurubis has been interested in companies which operate overseas, primarily in South America, but has so far failed to identify any likely candidates.

According to Aurubis, Chinese copper imports may increase in H2 2011, after the decline seen in H1. May imports contracted to 149,235t in May 2011 from 160,236t in the previous month. The figure was also down by 46.7% from the same period a year ago. Aurubis commented that Chinese copper demand was met by stocks in warehouses, which have been heavily down due to recent consumption. The European copper producer said that the fact that Chinese IP in May was strong is an indication of strong copper demand.

According to reports, Aurubis, Europe's leading copper semis fabricator, is successfully maintaining high levels of output and is looking for takeover opportunities despite the current economic turmoil in the eurozone. The company sees current global demand for copper as strong and does not expect it to weaken in the coming months. It has been speculated that Aurubis may acquire assets in Asia and/or South America in the near term. Nevertheless, the company announced last week that it plans to close some its flat rolled copper operations in Finspång, Sweden due to overcapacity.

Aurubis issued redundancy notices to 177 employees and began relocating rolling equipment to its facilities in Zutphen, Netherlands and Buffalo, USA. Aurubis took ownership of the facility from Luvata in September 2011 when it acquired Luvata's rolled products division. However, structural overcapacity due to longterm declining demand in the European copper strip for engine cooling segment led to the operation generating losses in the past few years. In an earlier announcement on Aurubis' website, the company said that production at Finspång would be gradually reduced from mid-2013 with the company expecting to finalise the closure in late 2013.

HAMBURG, May 18 (Reuters) - Spot copper treatment and refining charges (TC/RCs) are believed to have fallen to about $50 a tonne and 5 cents a pound, Europe's largest copper producer Aurubis (NAFG.DE) said on Monday. This was down from a TC/RC level of $75 a tonne and 7.5 cents a lb reported in March. TC/RCs, the fees charged by smelters to refine copper concentrate into metal, are a key part of the global copper industry's revenues.

Aurubis, a leading European copper semis fabricator, said that it saw product demand and production recover in mid-May in the wire and cable industry and in some other copper semis sectors. The wirerod market, especially the automotive wiring industry, is supported by government stimulus packages. It said orders for continuous cast shapes also stabilised in May then rose slightly in June. The company reported pretax profit in the third quarter to June fell to 51m euros (US$72m). Product output was 479,000t of wire rod and 111,000t of continuous cast shapes for the first nine months.

German integrated copper producer Aurubis reported a 47% y-o-y increase in net income to €258M in H1 FY2010-2011 (1st Oct 2010 - 31st Mar 2011), up from €161M. H1 revenue increased by 42% y-o-y from €4.5B to €6.5B. This outcome was mainly the result of higher copper prices and continued demand for copper caused by the global economic recovery. However, demand from China steadied in Q2 due to a tighter credit environment, as did demand from Europe, due to increasing economic instability. The wire and cable industry performed well, experiencing strong demand from the automotive and domestic appliance sectors. Likewise, copper strip was supported by demand from the coinage as well as special material sectors. On the other hand, copper tube and flat rolled products struggled to recover as a result of strong competition from lower cost substitutes.

Aurubis AG, the Germany based refined copper and copper products manufacturer, said that actual business operations do not reflect the pronounced negative mood indicated by the International Monetary Fund's (IMF)growth forecast reduction for developed countries. Citing the Eurozone's 5.3% y-o-y rise in industrial production in August, as well as strong recent performances in Germany's electrical and automotive industry, Aurubis surmises that there is no sign of a slump in orders as implied by the negative market sentiment.