Operating earnings before taxes fell 11% to 111 million euros ($119 million) in the first quarter through December, from 125 million euros a year earlier. That was slightly below a company-compiled consensus estimate of 115 million euros.

The decline was driven by a 16% drop in earnings for the metal recycling segment, as metal prices fell especially for nickel, palladium and copper, the company said.

That was partly offset by lower electricity and gas costs as well as higher wire rod sales and copper treatment and refining charges, it added.

The custom smelting and products business, Aurubis' biggest, saw its operating pre-tax earnings decline by 1% in the quarter.

Launching costs of strategic projects also had a negative effect on quarterly earnings, the company said.

Aurubis is carrying out a 1.7 billion euro investment plan that includes building a new recycling plant in the U.S. and boosting security at its Hamburg facility after the theft of precious metals resulted in a 169 million euro hit last year.

The company reiterated its full-year outlook for operating pre-tax profit of 380 million to 480 million euros in the financial year through September.

($1 = 0.9301 euros)

(Reporting by Louis van Boxel-Woolf and Paolo Laudani in Gdansk; editing by Milla Nissi)