Aurubis reports profit slump after fraud cases
The Hamburg-based copper producer and recycling specialist Aurubis has recorded a slump in profits following cases of theft and fraud. According to preliminary figures, the fiscal year ended with an operating pre-tax profit of 349 million euros, as Aurubis AG announced on Wednesday. Compared to the previous year, this represents a decline of around 34 percent.
"Compared to the previous year, the operating result is significantly influenced by the financial effects from the criminal acts against Aurubis, which were recognized in profit or loss in the past fiscal year," the press release states. The profit is at the upper end of the most recently published forecast of 310 to 350 million euros.
Aurubis does not intend to publish the full income statement for 2022/23 (until the end of September) until December 20, two weeks later than planned. "The reason for the postponement is the increased time required to deal with the criminal activities directed against Aurubis in the course of preparing and auditing the financial statements."
Aurubis was the victim of a large-scale fraud this year, with losses estimated at almost 200 million euros. The fraud was discovered during regular audits of the metal inventory. There were considerable deviations from the target stock as well as deviations in special samples of certain recycling deliveries.
Aurubis assumes that manipulated samples with high levels of valuable metals were submitted, but that the actual deliveries then contained significantly less valuable metals - which ultimately led to over-invoicing. It had previously become known in June that a gang of thieves had allegedly been stealing intermediate products containing precious metals from the company for years, generating proceeds worth around 20 million euros.
The financial impacts of the criminal activities, including theft and fraud, significantly contributed to Aurubis' profit decline. The large-scale fraud involving valuable metals led to over-invoicing and estimated losses of nearly 200 million euros for Aurubis.
Source: www.dpa.com
