Austrian aluminum company Austria Metall AG (Amag) posted an 11.7-percent increase in 1999 earnings despite a 6-percent decline in turnover to 556.6 million euros ($520.2 million) due to low aluminum prices in the first half of the year.

Pretax earnings rose to 33.4 million euros ($31.2 million) from 29.9. million euros in 1998. While all units operated at good capacity, German subsidiary Aluminium Unna AG suffered noticeably from internal structural problems and was divested in a staff buyout, Amag said.

The extrusions plant and rolling mill at Amag's main operation in Ranshofen countered the pressure on margins by improved output and a better production mix, Amag said, noting that the rolling mill lifted its output by some 5,000 tonnes to 95,000 tonnes.

Amag said that it expected volumes, at the extrusions plant to decline slightly this year as it had reduced its capacity shifts in favor of flexibility. Due to a restructuring of internal operations, which won't affect the bottom line until next year, the company expects a rather modest operating profit this year.

Amag added that it expected rolling mill sales to remain at a high level, with an expansion of its market position in the United States and the Far East.