voestalpine reports solid results despite extremely difficult environment
August 20, 2024
The voestalpine Group has reported a solid result in the first quarter of the 2024/25 business year. The group’s stability was said to be attributed to its global positioning and sector diversification, despite a poor European economic environment.
“In an extremely difficult environment, especially for European steel companies, we were able to perform very well both in steel production and in the area of downstream processing. Our high-quality steel products are highly sought after in the most technologically demanding segments, such as the rail and aerospace industries. Our strategic goal remains continued growth in high-yield markets,” stated Herbert Eibensteiner, CEO of voestalpine AG.
The rail infrastructure and aerospace sectors performed particularly strongly in the first quarter. The energy sector recorded positive demand, especially in the renewable energy segment. By contrast, the construction and mechanical engineering industries remained at a persistently low level. The ongoing weak development, particularly in the German automotive industry, led to low demand for tool steel and in the Automotive Components business segment. In contrast, demand from the automotive industry for products from voestalpine’s Steel Division was satisfactory. Demand for voestalpine’s high bay warehousing systems made from the most robust steel profiles remains strong.
At €4.1 billion, revenue in the first quarter of the business year 2024/25 was slightly below the same period in the first quarter of the business year 2023/24 (€4.4 billion). The EBITDA operating result decreased by 16.5% year-on-year to €417 million (Q1 2023/24: €499 million). The EBITDA is influenced by negative one-off effects of €28 million from the ongoing sales process for Buderus Edelstahl.
Profit from operations (EBIT) fell by 26.7% year-on-year to €228 million (Q1 2023/24: €311 million). Earnings before taxes amounted to €189 million (Q1 2023/24: €273 million). Profit after tax fell to €150 million (Q1 2023/24: €213 million). Cash flow from operating activities increased significantly from €10 million in the previous year to €215 million.
Equity increased by 0.8% compared to the reporting date (March 31, 2024) and amounted to €7.6 billion as of June 30, 2024. Net financial debt increased by 6.3% compared to the reporting date to reach €1.8 billion as of June 30, 2024. At 23.2%, the gearing ratio (net financial debt in relation to equity) increased slightly compared to the balance sheet date (22.0%).
As of June 30, 2024, the number of employees in the voestalpine Group worldwide amounted to 51,400 (full-time equivalent), which is 0.4% more than in the previous year (51,200).
