EQS-News: voestalpine AG: Economic slowdown impacts voestalpine earnings for Q3 2023/24

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

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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: 1831751


    
   End of News EQS News Service


   1831751  07.02.2024 CET/CEST

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