EQS-News: voestalpine AG / Key word(s): Quarterly / Interim Statement
voestalpine AG: Economic slowdown impacts voestalpine earnings for Q3
2023/24
07.02.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Economic slowdown impacts voestalpine earnings for Q3 2023/24
• At EUR 12.4 billion, revenue for Q1 to Q3 2023/24 is 8.8% lower than
in the previous year (EUR 13.6 billion)
• EBITDA fell by 31.7% to EUR 1.3 billion (previous year: EUR 1.9
billion)
• EBIT decreases year-over-year from EUR 1.1 billion to EUR 713 million
(–37.4%)
• Profit before tax at EUR 575 million (previous year: EUR 1.1 billion)
and profit after tax at EUR 431 million (previous year: EUR 864
million)
• Equity rises by 2.5% from EUR 7.6 billion to EUR 7.8 billion
• Net financial debt fell year-over-year, from EUR 2.7 billion to EUR 2
billion (–24.6%)
• Gearing ratio improved significantly year-over-year from 35.1% to
25.8%
• Number of employees stands at 50,712 FTEs (+1.4%)
• EBITDA outlook unchanged at EUR 1.7 billion
Weak economic development, particularly in Europe, put pressure on
voestalpine’s earnings in the first three quarters of the 2023/24 business
year (April 1 to December 31). The international steel and technology
group did, however, benefit overall from its global positioning and
industry diversification. The energy sector performed well in the first
nine months of the current business year. The Railway Systems business
segment experienced good demand for the first three quarters of the
business year; as a global market leader in rail infrastructure systems,
voestalpine benefited from the high global demand for rails, turnouts, and
systems for fully digital monitoring of rail tracks. Positive trends in
the aerospace segment continued in the first three quarters. By contrast,
demand remained weak in the consumer goods, construction and mechanical
engineering industries. The tool manufacturing segment in particular saw a
decline in demand in the second and third quarters of 2023/24. Demand from
the automotive industry was stable in the first three quarters with
previous supply chain problems largely being eliminated. The storage
technology segment continued to show good capacity utilization in the
first nine months of the business year.
“The expected economic downturn was clearly noticeable in the first nine
months of the current business year. However, voestalpine is in a strong
position overall due to its broad focus in various market segments and
economic regions. Ensuring the competitiveness of the location as an
industrial base will nevertheless be crucial. The key points here are
expansion of the renewable energy supply and the grids as well as the
extension of electricity price compensation until 2030,” highlights
Herbert Eibensteiner, CEO of voestalpine AG.
New special steel plant in Kapfenberg in exclusive operation
The new special steel plant in Kapfenberg has been in exclusive operation
since the start of the 2024 calendar year, with the old special steel
plant shut down as planned at the end of 2023. voestalpine will produce up
to 205,000 tons of high-performance materials for the automotive,
aerospace and energy industries each year at the new plant, securing
around 3,500 jobs in Kapfenberg and Mürzzuschlag.
Revenue and earnings performance
The voestalpine Group’s revenue fell by 8.8% in the first nine months of
the 2023/24 business year, from EUR 13.6 billion to EUR 12.4 billion.
EBITDA was down by 31.7% from EUR 1.9 billion to EUR 1.3 billion
year-over-year (margin of 10.4%). EBIT fell by 37.4% year-over-year from
EUR 1.1 billion to EUR 713 million (margin of 5.8%). Profit before tax
fell by 45.4% over the first three quarters of 2023/24, dropping from
EUR 1.1 billion to EUR 575 million in the reporting period. Profit after
tax halved to EUR 431 million (previous year’s figure: EUR 864 million).
Equity as of December 31, 2023 is EUR 7.8 billion (+2.5%). Net financial
debt was reduced by 24.6% year-over-year to EUR 2 billion. The gearing
ratio (net financial debt as a percentage of equity) improved
year-over-year, from 35.1% to 25.8%. The number of employees (FTEs) in the
voestalpine Group rose 1.4% year-over-year, from 50,018 to 50,712.
Outlook
Although the voestalpine Group’s performance is solid overall, the
expected economic downturn is clearly noticeable in some areas. The
interest rate-sensitive segments like construction, mechanical engineering
and consumer goods industries as well as investments in industrial
production facilities in general have weakened significantly and, from
today’s perspective, will not show any signs of recovery for the remainder
of the business year 2023/24. The automotive industry segment will remain
stable at the current level in the final quarter of 2023/24. The energy
segment will continue its good momentum. The railway systems business is
also expected to continue its positive development. The same applies to
the aerospace industry, which has seen a dynamic recovery following the
massive slump in the wake of the COVID-19 pandemic. From a regional
perspective, Europe is also expected to see the weakest economic trend
worldwide for the remainder of the 2023/24 business year. The eurozone has
been teetering on the brink of recession in the last two quarters and no
positive impetus is expected for the final quarter of the current business
year, either. Developments in North America are still expected to be
relatively robust. In South America, where Brazil is particularly relevant
for the voestalpine Group, the economy appears to be cooling off somewhat
in the last quarter of the business year. China’s overall economy is
growing, although the individual sectors are developing quite differently.
Most probably, the problems in the real estate sector will not be resolved
in the short term and will subsequently have a negative impact on related
sectors such as the construction industry. However, the manufacturing
industry, particularly in the high-tech sector, will continue to develop
positively.
Against this backdrop and assuming no unexpected economic upheavals, the
Management Board of voestalpine AG continues to expect EBITDA in the range
of EUR 1.7 billion for the business year 2023/24.
KEY FIGURES – voestalpine GROUP
Q1-Q3 2022/23 Q1-Q3 2023/24 Change
04/01-12/31/2022 04/01-12/31/2023 in %
Revenue 13,585.2 12,387.6 -8.8
EBITDA 1,879.0 1,282.9 -31.7
EBITDA margin in % 13.8% 10.4%
EBIT 1,140.0 713.2 -37.4
EBIT margin in % 8.4% 5.8%
Profit before tax 1,052.6 574.8 -45.4
Profit after tax from continuing 770.4 436.1 -43.4
operations
Profit after tax from 93.8 -4.9
discontinued operations
Profit after tax * 864.2 431.2 -50.1
EPS – basic earnings per share 3.93 2.06 -47.6
from continuing operations
(euros)
EPS – basic earnings per share 0.53 -0.03
from discontinued operations
(euros)
EPS – basic earnings per share 4.46 2.03 -54.5
(euros)
EPS – diluted earnings per share 3.93 1.99 -49.4
from continuing operations
(euros)
EPS – diluted earnings per share 0.53 -0.03
from discontinued operations
(euros)
EPS – diluted earnings per share 4.46 1.96 -56.1
(euros)
Gearing Ratio in % (12/31) 35.1% 25.8%
In millions of euros
^* Before deduction of non-controlling interests.
The Report of the first three quarters of the BY 2023/24 of voestalpine AG
as of the December 31, 2023, may be accessed on the company’s website at
(1) www.voestalpine.com under the ’Investors’ tab. In case of questions,
please contact the company’s Investor Relations team at +43/50304/15-9949.
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07.02.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
═════════════════════════════════════════ ═════════ ════════════════════════ Language: English Company: Voestalpine AG Voestalpine-Straße 1 4020 Linz Austria Phone: +43 50304/15-9949 Fax: + 43 50304/55-5581 Email: IR@voestalpine.com
Internet: www.voestalpine.com
ISIN: AT0000937503
WKN: 897200
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1831751
End of News EQS News Service
1831751 07.02.2024 CET/CEST
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