Key Highlights
. Revenue increased 17% to $240.4 million in Q3 2010 from $205.4 million in Q3 2009; YTD 2010 revenue was $719.8 million up 13% from the same period in 2009
EBITDA[1] increased 1% to $18.8 million in Q3 2010 from $18.6 million in Q3 2009; YTD 2010 EBITDA was $64.7 million up 14% from the same period in 2009
EPS on a fully diluted basis improved to ($0.41) in Q3 2010 compared to Q3 2009 EPS of ($0.76); excluding Timminco, EPS improved to $0.11 in Q3 2010, up from ($0.50) in Q3 2009. YTD fully diluted EPS improved to ($0.37) from ($1.69) in the same period in 2009
The Advanced Materials Division generated revenue of $154.9 million and EBITDA of $9.4 million in Q3 2010; YTD revenue and EBITDA was $447.4 million and $32.1 million, respectively
The Engineering Systems Division generated revenue of $53.2 million and EBITDA of $7.4 million in Q3 2010; YTD revenue and EBITDA was $178.0 million and $27.5 million, respectively
Graphit Kropfmühl generated revenue of $32.4 million and EBITDA of $2.0 million in Q3 2010; YTD revenue and EBITDA was $94.4 million and $5.1 million, respectively
As of September 30, 2010 cash on hand was $90.2 million, net debt was $144.6 million; Q3 2010 free cash flow[2] was $5.4 million


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

[2] Free cash flow is defined as EBITDA less change in working capital and maintenance capital expenditures

Amsterdam, 10 November 2010 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported third quarter 2010 revenue increased 17% to 240.4 million from $205.4 million in the third quarter 2009.

Net income attributable to shareholders for the third quarter 2010, excluding Timminco, was $3.0 million, or $0.11 per fully diluted share, compared to net loss of ($13.3) million, or ($0.50) per fully diluted share for the third quarter 2009. EBITDA increased 1% to $18.8 million in the third quarter 2010 from $18.6 million in the third quarter 2009.

In commenting on results, Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "Market conditions remained uncertain during the third quarter. Despite this, AMG generated growth in revenues and stable earnings in the third quarter. The Advanced Materials division's revenue and earnings increased even though it encountered higher input prices and a less favorable product mix. The Engineering Systems' order intake improved slightly during the quarter compared the second quarter 2010; however, it was up over 50% from the same period in 2009. Due to a low level of Engineering Systems' order backlog at the beginning of the quarter, revenue and earnings remained low. Graphit Kropfmühl delivered modest performance during the third quarter as demand and prices remained strong for natural graphite."

Key Figures

In 000's US Dollar Q3'10 Q3'09 Change
Revenue $240,427 $205,406 17%
Gross profit 42,102 39,949 5%
Gross margin 17.5% 19.5%

Operating income 10,433 (110) N/A
Operating margin 4.3% (0.0%)
Net Income attributable to shareholders(11,170)(20,302) 45%

EPS - fully diluted (0.41) (0.76) 46%
Adjusted EPS - fully diluted[1] 0.11 (0.50) N/A

EBITDA[2] 18,756 18,602 1%
EBITDA margin 7.8% 9.1%

Notes:

[1] Adjusted to exclude all Timminco results including equity losses which accounted for ($0.52) in EPS in Q3 2010

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

Timminco
AMG's ownership in Timminco was 42.5% as of September 30, 2010. AMG accounts for its investment in Timminco via the equity accounting method. Timminco's net loss for the third quarter 2010 is included in share of loss from associates on AMG's income statement and the carrying value of AMG's investment in Timminco of $7.7 million is listed as an asset on AMG's balance sheet. Subsequent to the end of the third 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 third quarter 2010 financial statements can be found at www.Timminco.com

Financial Review

Tax
AMG recorded a tax expense of $0.3 million in the quarter ended September 30, 2010 as compared to a tax expense of $5.7 million in the quarter ended September 30, 2009. For the nine months ended September 30, 2010, AMG has approximately $27.0 million of losses in associates. Since these companies are not consolidated, AMG cannot recognize the tax benefit for these losses. Excluding the losses from associates, the effective tax rate would be a normalized 40% for the nine months ended September 30. The Company is beginning to realize the benefits of the tax restructuring which it started to implement in 2010, with year-to-date savings of approximately $3 million.