EQS-News: voestalpine AG: voestalpine with solid half-year results for 2023/24 despite economic slowdown

EQS-News: voestalpine AG / Key word(s): Half Year Results
   voestalpine AG: voestalpine with solid half-year results for 2023/24
   despite economic slowdown

   08.11.2023 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   voestalpine with solid half-year results for 2023/24 despite economic
   slowdown

     • Revenue for the first half of 2023/24 fell by 8.4% from EUR 9.3
       billion to EUR 8.5 billion compared to record figures in the previous
       year
     • EBITDA fell by 36.7% from EUR 1.4 billion to EUR 915 million
     • EBIT fell by 40.9% year over year, from EUR 898 million to EUR 531
       million
     • Profit before tax is EUR 440 million (H1 2022/23: EUR 846 million);
       profit after tax is EUR 333 million (H1 2022/23: EUR 715 million)
     • Gearing ratio improved year over year, from 32.7% to 26.6%
     • Employees: 51,212 FTE (+1.7%)
     • Economic slowdown intensifies, with developments differing widely by
       sector

   voestalpine achieved a solid result in the first half of 2023/24 (April 1
   to September 30) despite a weaker overall economic environment. Over the
   reporting period, the economic momentum continued to slow down in Europe
   in particular. For voestalpine, this meant a decline in demand from the
   construction, mechanical engineering, and consumer goods segments. Exports
   by Chinese steel manufacturers also placed huge pressure on the
   international steel markets. Nevertheless, voestalpine’s performance in
   its most important customer segments remained consistently positive thanks
   to its strategic focus on the highest quality. In the automotive industry
   for instance, easing of the global supply chain situation resulted in
   stable production levels. The rail and aerospace industries, the
   conventional energy sector (oil & natural gas) and the renewable energy
   sector (solar industry) also continued to perform very well, defying the
   overall economic trend. Positive demand also prevailed in storage
   technology.

   “In a market environment that was challenging at times, voestalpine was
   able to demonstrate its strengths in the first half of 2023/24 with its
   focus on high-quality products, particularly for the mobility and energy
   industries. The last business year saw record figures. The present results
   are in line with the long-term average and are definitely satisfactory in
   view of the current economic conditions,” says Herbert Eibensteiner, CEO
   of voestalpine AG. The launch of greentec steel, voestalpine’s ambitious
   step-by-step plan for a green steel production, recently represented an
   important step in the Group’s future viability. The plan is for one blast
   furnace at each of the Linz and Donawitz sites to be replaced by a green
   electricity-powered electric arc furnace by 2027, resulting in a 30%
   reduction in carbon emissions. The official opening of the new high-tech
   stainless steel plant in Kapfenberg represented a further milestone for
   the future.

   Development of revenue and earnings
   After the voestalpine Group achieved record levels of revenue and earnings
   in the first half of the 2022/23 business year, weaker financial
   performance indicators were recorded when compared year over year.
   Specifically, revenue decreased by 8.4% from EUR 9.3 billion to EUR 8.5
   billion in the first half of 2023/24. EBITDA fell by 36.7% from EUR 1.4
   billion (margin of 15.6%) to EUR 915 million (margin of 10.7%). The Metal
   Engineering Division was able to increase both revenue and EBITDA,
   supported by strong performance in the Railway Systems business unit and
   the Tubulars (seamless tubes) product segment. The other three divisions
   reported weaker development for the reporting period. Profit from
   operations (EBIT) fell by 40.9% in the first half of 2023/24, from EUR 898
   million (margin of 9.7%) to EUR 531 million (margin of 6.2%).

   Net financial income (financial income less finance costs) fell from EUR
   –52 million to EUR –91 million. As a result, profit before tax fell by
   48.1% year over year from EUR 846 million to EUR 440 million. The
   voestalpine Group generated a profit after tax of EUR 333 million (–53.5%)
   overall in the first half of 2023/24.

   The gearing ratio (net financial debt as a percentage of equity) fell year
   over year from 32.7% to 26.6% as of September 30, 2023. Specifically,
   voestalpine was able to reduce its net financial debt by 15.6% from EUR
   2.5 billion to EUR 2.1 billion in the reporting period. In terms of the
   equity, the Group recorded a slight increase of 3.9% from EUR 7.5 billion
   to EUR 7.8 billion compared to the first half of the previous year. The
   number of employees (FTE, full-time equivalent) increased by 1.7% to
   51,212 employees compared with the previous year’s reporting date.

   Outlook
   The economic slowdown that has been expected for almost a year arrived in
   some areas of the voestalpine Group in the first half of the business year
   2023/24, particularly in the second quarter.

   As expected, the market environment in the construction, mechanical
   engineering, and consumer goods industries has weakened. From today’s
   perspective, the current situation is expected to continue in the second
   half of the business year 2023/24 and thus we assume no substantial
   improvement in demand in these segments. This means stagnating demand at a
   subdued level.

   From today’s perspective, the automotive industry should remain largely
   robust in the second half of 2023/24. Although the high order backlogs
   built up as a result of the pandemic are increasingly being processed by
   car manufacturers, overall development is expected to remain largely
   stable until the end of the current business year.

   The conventional energy sector (oil and natural gas) lost momentum on the
   price side in the course of the first half of the business year 2023/24,
   but this is due to the reduction of material bottlenecks and not to market
   weakness. Demand for voestalpine products for the oil and natural gas
   industry has consequently normalized. A largely stable development can be
   anticipated for the second half of 2023/24. The good market environment in
   the renewable energy sector (photovoltaics) is expected to continue for
   the remainder of the business year 2023/24.

   In the area of railway systems, the current very good development is
   expected to continue for the remainder of the business year, although the
   usual seasonality over the Northern winter has to be taken into account.

   The upward trend in the aerospace industry will also continue in the
   second half of the business year 2023/24.

   The forecasts are therefore largely in line with previous assessments,
   although the economic outlook for Europe must now be viewed somewhat more
   cautiously. Investment activity in the industrial sector in particular has
   slowed and is estimated to remain at a low level in the second half of
   2023/24.

   Therefore, assuming no massive economic distortions on account of the
   central banks’ interest rate policies or geopolitical escalation
   scenarios, the Management Board of voestalpine AG expects EBITDA for the
   business year 2023/24 to be at the lower end of the previously stated
   range (EUR 1.7 to 1.9 billion) and thus in the region of EUR 1.7 billion,
   which is also in line with current market expectations.

   The impact of current geopolitical developments remains difficult to
   assess. However, it is clear that the war in Europe and the armed conflict
   in the Middle East have significantly increased the risk of unforeseeable
   influences on the economic environment. This makes all forecasts more
   uncertain.

   KEY FIGURES – voestalpine GROUP

                                   H1 BY 2022/23     H1 BY 2023/24     Change
                                   04/01/–09/30/2022 04/01/–09/30/2023 in %
   Revenue                         9,295.2           8,512.8           -8.4
   EBITDA                          1,445.7           914.6             -36.7
   EBITDA margin in %              15.6%             10.7%              
   EBIT                            898.1             531.1             -40.9
   EBIT margin in %                9.7%              6.2%               
   Profit before tax               846.3             439.6             -48.1
   Profit after tax from           626.9             334.5             -46.6
   continuing operations
   Profit after tax from           88.2              -2.0               
   discontinued operations
   Profit after tax *              715.1             332.5             -53.5
                                                                        
   EPS – basic earnings per share  3.30              1.59              -51.8
   from continuing operations
   (euros)
   EPS – basic earnings per share  0.50              -0.01              
   from discontinued operations
   (euros)
   EPS – basic earnings per share  3.80              1.58              -58.4
   (euros)
                                                                        
   EPS – diluted earnings per      3.30              1.56              -52.7
   share from continuing
   operations (euros)
   EPS – diluted earnings per      0.50              -0.01              
   share from discontinued
   operations (euros)
   EPS – diluted earnings per      3.80              1.55              -59.2
   share (euros)
                                                                        
   Gearing ratio in % (09/30)      32.7%             26.6%              
   In millions of euros

   * Before deduction of non-controlling interests.

   The Report of the first half of 2023/24 of voestalpine AG as of the
   September 30, 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.

   Please direct any inquiries to:

   voestalpine AG
   Peter Felsbach
   Head of Group Communications I Group Spokesperson
   voestalpine-Strasse 1
   4020 Linz, Austria
   T. +43/50304/15-2090
   peter.felsbach@voestalpine.com

   Peter Fleischer
   Head of Investor Relations
   voestalpine-Strasse 1
   4020 Linz, Austria
   T. +43/50304/15-9949
   peter.fleischer@voestalpine.com

   [2]www.voestalpine.com

    

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   08.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     voestalpine AG
                voestalpine-Straße 1
                4020 Linz
                Austria
   Phone:       +43 50304/15-9949
   Fax:         +43 50304/55-5581
   E-mail:      IR@voestalpine.com
   Internet:    www.voestalpine.com
   ISIN:        AT0000937503
   WKN:         897200
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1767509


    
   End of News EQS News Service


   1767509  08.11.2023 CET/CEST

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