EQS-News: voestalpine AG / Key word(s): Annual Results
voestalpine AG: voestalpine ends business year 2023/24 with solid operating
results and pioneering projects
05.06.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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voestalpine ends business year 2023/24 with solid operating results and
pioneering projects
• EBITDA in line with expectations at EUR 1.7 billion (previous year:
EUR 2.5 billion)
• Second highest revenue to date at EUR 16.7 billion after record result
in BY 2022/23 (EUR 18.2 billion)
• Key earnings figures influenced by non-recurring effects
• Debt level at an all-time low
• Cash flow from operating activities rose significantly from
EUR 956 million to EUR 1.4 billion
• Solid operating result once again confirms the Group strategy
• Strategically important projects launched in international markets
• Technological milestones achieved with construction starting for
greentec steel in Linz and Donawitz along with the opening of the
special steel plant in Kapfenberg
• Number of employees (FTE) rose by 0.8% to 51,600
• Outlook for 2024/25: EBITDA between EUR 1.7 billion and EUR 1.8 billion
In the past business year, April 1, 2023 to March 31, 2024, voestalpine
achieved a solid operating result. This financial success once again proves
the robustness of the long-term corporate strategy: Focusing on the most
technically demanding products made it possible to expand the market share
in the global competitive environment in the face of a tough economic
backdrop. Our global presence and industrial diversification ensured
stability in an environment where interest rate-sensitive industries such
as construction and mechanical engineering recorded significant drops in
demand. The railway infrastructure, aerospace, and energy industries
performed especially well. Demand for products manufactured by the
voestalpine Steel Division in the automotive industry was stable throughout
the year. “We have once again proven our strength and resilience in the
past business year. Despite operating in a highly turbulent market, we have
succeeded in achieving a strong operating result that met market
expectations and in further reinforcing and improving our strategic
position on international markets with a number of major projects,”
explains Herbert Eibensteiner, CEO of voestalpine AG.
Over the past business year, the steel and technology Group rolled out a
number of key strategic projects around the world. With this, voestalpine
continued to improve its position as global leader in rail infrastructure
by acquiring production facilities for rail fastening technology and
sleeper production in the U.S. Capacities were further increased in the
demanding warehouse technology segment with the construction of a new
production plant in the U.S. and the acquisition of the Italian warehouse
specialist Torri S.R.L. In South America, production capacities were
doubled for special profiles primarily used in photovoltaic installations.
Meanwhile, in the Automotive Components business segment in China the fifth
phs line – the first carbon-neutral production unit powered by in-house
photovoltaic installations – went into operation.
Investing in the future
With the official opening of the state-of-the-art special steel plant in
Kapfenberg back in October 2023, voestalpine set a further technological
milestone in the production of pioneering high-performance materials for
the international automotive, energy, and aerospace industries. A global
pioneer in terms of digitalization and sustainability, the new plant is the
first of its kind to be built in Europe for four decades. Once full
operations commence, the new plant will produce 205,000 tons of special
steels annually for some of the most demanding customer segments.
Other key milestones achieved over the past business year include the two
groundbreaking ceremonies for greentec steel, the clearly defined roadmap
for the transformation of steel production and the awarding of contracts
for the key facilities for the installation of one electric arc furnace at
each of the sites in Linz and Donawitz. Switching to this technology allows
the steel and technology Group to reduce its emissions by around 30% as of
2027, representing annual savings of almost 4 million tons of CO[2]. As a
result, greentec steel is the largest climate protection program in
Austria. The investment volume is around EUR 1.5 billion. The downstream
processing divisions of voestalpine that generate just over half of the
Group’s revenue have achieved an almost negligible direct carbon footprint
(Scope 1). “The official opening of our special steel plant in Kapfenberg
and the official start of construction for greentec steel in Linz and
Donawitz are particularly important for the future of voestalpine in terms
of strategy. In view of this, the past business year can be viewed as a
historic success,” explains Eibensteiner.
On the whole, the voestalpine Group’s investments during the past business
year came to EUR 1.2 billion, up 33.7% on the previous business year’s
level of EUR 922.0 million.
Solid operating result, significant rise in cash flow, and negative
non-recurring effects
Revenue reached the second-highest amount in the Group’s history at
EUR 16.7 billion after achieving record revenue of EUR 18.2 billion in the
2022/23 business year. After hitting record levels in the previous year,
the key figures have returned to normal in the current reporting year and
voestalpine has recorded strong performance in a long-term comparison. The
operating result (EBITDA) reached EUR 1.7 billion (previous year:
EUR 2.5 billion). EBIT came to EUR 569.3 million in total. While the
economic slowdown was partly responsible for the drop from the previous
year (EUR 1.6 billion), non-recurring effects also played a role.
Non-recurring effects had an impact on the key performance indicators: Two
divisions reported non-recurring effects (impairment losses) totaling
EUR 428 million. As announced, voestalpine is planning to sell Buderus
Edelstahl in Germany. This move comes as part of the consistent
implementation of the Group’s strategy to focus on the materials sector at
the highest level of quality. This planned sale has resulted in a total of
EUR 360 million in unscheduled impairment losses in the High Performance
Metals Division. EUR 92 million of this amount has also been recognized in
EBITDA.
Due to the burden placed on the automotive supplier industry in Germany in
the face of the ongoing structural underutilization, the Metal Forming
Division began to restructure its automotive supplier operations in Germany
in the Automotive Components business in the 2023/24 business year and
recorded one-off losses totaling EUR 68 million. In addition to these major
effects, the operating result (EBITDA) and consequently the profit from
operations (EBIT) were affected in the 2023/24 business year by positive
and negative non-recurring effects on a medium and small scale, which
almost fully canceled each other out.
Profit before tax amounted to EUR 383.4 million, with profit after tax
totaling EUR 207.1 million. Despite the decline in earnings, cash flow from
operating activities rose significantly by more than half of the amount
achieved in the previous year, namely EUR 956.2 million, to the present
EUR 1.4 billion in the current year due to the decrease in working capital.
In recent years, voestalpine has been able to continuously reduce its net
financial debt. However, despite increasing investment activities, the
value remained at a historically low level at EUR 1.7 billion. Equity
remained similarly stable (–2.4%) at EUR 7.5 billion as of March 31, 2024
(March 31, 2023: EUR 7.7 billion) despite unscheduled impairment losses.
The gearing ratio (net financial debt to equity ratio) remained practically
unchanged compared to the previous year at 22%.
As of March 31, 2024, the number of employees in the voestalpine Group
worldwide amounted to 51,600 (full-time equivalent) which is 0.8% more than
in the previous year (51,200).
Proposed dividend: EUR 0.70
Subject to approval by the Annual General Meeting of voestalpine AG on July
3, 2024, a dividend of EUR 0.70 per share will be paid to the company’s
shareholders in consideration of earnings per share of EUR 0.59 in the
2023/24 business year. This translates to a distribution ratio of
approximately 120%.
Outlook for the business year 2024/25
The current trends have not changed significantly with the start of the new
2024/25 business year. While Europe is currently still experiencing very
subdued economic growth, momentum in North America is solid despite high
interest rates. Brazil has cooled off recently, whereas economic growth in
China has picked up again somewhat.
With regard to the market segments, the good market environment in the
railway infrastructure, aerospace, and warehouse technology segments is
expected to continue. The automotive industry and the energy sector should
largely continue their stable development to date. The construction,
mechanical engineering, and consumer goods segments are likely to remain at
least at the current level. Any positive stimuli, such as interest rate
cuts, could lead to an upturn in the second half of the 2024/25 business
year.
Based on these assumptions and assuming no economic distortions from
geopolitical developments, the Management Board of voestalpine AG expects
an EBITDA in the range of EUR 1.7 to 1.8 billion for the business year
2024/25.
Strategically, voestalpine’s management will continue to expand the Group’s
processing activities globally in the business year 2024/25 and the
following years and continue to drive forward the implementation of the
greentec steel transformation project towards net zero CO[2] emissions.
KEY FIGURES – voestalpine GROUP
BY 2022/23* BY 2023/24 Change
04/01/2022-03/31/2023 04/01/2023-03/31/2024 in %
Revenue 18,225.1 16,684.3 -8.5
EBITDA 2,543.9 1,666.1 -34.5
EBITDA margin in % 14.0% 10.0%
EBIT 1,622.8 569.3 -64.9
EBIT margin in % 8.9% 3.4%
Profit before tax 1,489.4 383.4 -74.3
Profit after tax from 1,083.9 215.6 -80.1
continuing operations
Profit after tax from 93.4 -8.5
discontinued operations
Profit after tax ** 1,177.3 207.1 -82.4
Diluted and basic 5.48 0.64 -88.3
earnings per share
(euros)
from
continuingoperations
Diluted and basic 0.53 -0.05
earnings per share
(euros)
from
discontinued operations
Diluted and basic 6.01 0.59 -90.2
earnings per share
(euros)
Gearing Ratio in % 21.6% 22.0%
(12/31)
In millions of euros
*Business year 2022/23, retroactively adjusted.
** 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.
Please direct any inquiries to:
Peter Fleischer
Head of Investor Relations
voestalpine-Strasse 1
4020 Linz, Austria
T. +43/50304/15-9949
fleischer@voestalpine.com
Mag. Peter Felsbach, MAS
Head of Group Communications I Spokesman
voestalpine-Straße 1
4020 Linz, Austria
T. +43/50304/15-2090
peter.felsbach@voestalpine.com
[2]www.voestalpine.com
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05.06.2024 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: 1917985
End of News EQS News Service
1917985 05.06.2024 CET/CEST
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