EQS-News: voestalpine AG: voestalpine posts solid result and a significant increase in operating cash flow in Q1 2024/25 in a difficult market environment

EQS-News: voestalpine AG / Key word(s): Quarterly / Interim
   Statement/Quarter Results
   voestalpine AG: voestalpine posts solid result and a significant increase
   in operating cash flow in Q1 2024/25 in a difficult market environment

   07.08.2024 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   voestalpine posts solid result and a significant increase in operating
   cash flow in Q1 2024/25 in a difficult market environment

    

     • Solid result in a poor economic environment once again confirms Group
       strategy
     • Revenue down slightly year-on-year at EUR 4.1 billion (EUR 4.4
       billion)
     • EBITDA of EUR 417 million influenced by negative one-off effects
       (previous year: EUR 499 million)
     • Significant increase in operating cash flow from EUR 10 million to
       EUR 215 million
     • Debt increased by 6.3% to EUR 1.8 billion compared to the balance
       sheet date
     • Number of employees (FTE) increased slightly by 0.4% year-on-year to
       51,400
     • EBITDA outlook at the lower end of the communicated range of EUR 1.7
       billion to EUR 1.8 billion
     • greentec steel on schedule and on budget, CO[2] reduction path
       confirmed

    

   voestalpine generated a solid result in the first quarter of the 2024/25
   business year (April 1 to June 30, 2024). The global positioning and
   sector diversification ensured stability for the steel and technology
   group even in the very poor European economic environment. 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 ultra-modern high bay warehousing systems made
   from the most robust steel profiles remains strong.

   “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,” says Herbert Eibensteiner, CEO of
   voestalpine AG.

    

   Investigation of the already reported intentional false journal entries is
   ongoing

   With regards to the facts already presented in the 2023/24 Annual Report,
   voestalpine has commissioned a specialized auditing company and a German
   law firm to investigate the intentionally false journal entries uncovered
   last business year. The false journal entries were intended to raise
   profit figures at a German company of the Metal Forming Division totaling
   around EUR 100 million over the business years between 2012/13 and
   2023/24. The accounting consequences were corrected retrospectively and
   are fully taken into account in the 2023/24 annual financial statements.
   The investigation of the matter is ongoing, and voestalpine will provide
   information on the results once the final report is available. Only then
   will it be possible to decide whether to bring civil or criminal charges.

    

   voestalpine considers issuing a green corporate bond

   voestalpine is considering issuing a new corporate bond in the Northern
   fall of this year. With the publication of a Green Financing Framework in
   June—as the first European steel company to do so—and the relaunch of the
   issuing program in July, the foundations were laid for issuing a green
   bond—the first green corporate bond in the European steel sector. A
   decision by the Management Board of voestalpine AG on the effective
   implementation of a transaction depends on the prevailing market
   situation.

    

   greentec steel on schedule and on budget, CO[2] reduction path confirmed

   As part of the transformation of its steel production, voestalpine will
   initially commission one electric arc furnace each in Linz and Donawitz in
   2027. Both major projects are on schedule and on budget. To improve
   verifiability, the Group has had its CO[2 ]reduction targets validated by
   the independent Science Based Targets Initiative. This confirms that a 30%
   reduction in direct greenhouse gas emissions from production (Scope 1) and
   from energy procurement (Scope 2) by 2029 compared to 2019 is in line with
   the Paris climate protection targets. These reductions correspond to
   annual savings of almost 4 million tons of CO[2]-emissions, making
   greentec steel Austria’s largest climate protection program.

   From 2030 to 2035, the Group is aiming to reduce CO[2]-emissions by 50%
   compared to 2019. The long-term goal for 2050 is economically viable steel
   production with net zero CO[2]-emissions.

    

   Solid operating result, significant increase in cash flow, negative
   one-off effects

   At EUR 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 (EUR 4.4 billion). The EBITDA operating result
   decreased by 16.5% year-on-year to EUR 417 million (Q1 2023/24: EUR 499
   million). The EBITDA is influenced by negative one-off effects of EUR 28
   million from the ongoing sales process for Buderus Edelstahl.

   As reported, voestalpine is planning to sell its German company Buderus
   Edelstahl. This step is a consistent implementation of the Group’s
   strategy to focus the materials sector on the highest quality spectrum.
   This planned sale already led to unscheduled impairment losses of EUR 181
   million in the High Performance Metals Division in the previous business
   year. Due to binding offers that have now been received, a further
   impairment loss of EUR 28 million was recognized in the first quarter of
   2024/25.

   Profit from operations (EBIT) fell by 26.7% year-on-year to EUR 228
   million (Q1 2023/24: EUR 311 million). Earnings before taxes amounted to
   EUR 189 million (Q1 2023/24: EUR 273 million). Profit after tax fell to
   EUR 150 million (Q1 2023/24: EUR 213 million). Cash flow from operating
   activities increased significantly from EUR 10 million in the previous
   year to EUR 215 million.

   Equity increased by 0.8% compared to the reporting date (March 31, 2024)
   and amounted to EUR 7.6 billion as of June 30, 2024. Net financial debt
   increased by 6.3% compared to the reporting date to reach EUR 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).

    

   Outlook

   Following the solid performance in the first quarter, the existing trends
   are currently expected to continue for the remainder of the 2024/25
   business year.

   While no substantial improvement can yet be assumed for the construction,
   engineering, and consumer goods segments in the current reporting period,
   the markets in the customer segments railway systems, aerospace, and
   warehouse technology, which have performed very well to date, should
   continue to show high demand for products and system solutions from the
   voestalpine Group. Demand from the conventional energy sector in the area
   of oil and gas exploration lost momentum in the first business quarter,
   especially in North America, but should remain stable at the now lower
   level for the remainder of the reporting period. The automotive industry
   was largely stable overall in the first quarter of 2024/25, although
   somewhat more moderate demand momentum cannot be ruled out in this segment
   in the second half of 2024/25 due to the persistently weak economy in
   Europe. Developments in the current globally challenging environment for
   tool steel should bottom out in the first half of 2024/25. Demand is
   expected to improve in the second half of 2024/25, driven in particular by
   momentum in the Asian economic region.

   In light of the continuing weak economic momentum in Europe, particularly
   in Germany, and the generally solid but by tendency lower-than-expected
   first quarter, the Management Board of voestalpine AG currently expects
   EBITDA for the business year 2024/25 to be at the lower end of the
   previously communicated range of EUR 1.7 to 1.8 billion and thus in the
   region of around EUR 1.7 billion.

    

   The Report of the first quarter of 2024/25 of voestalpine AG as of June
   30,2024, may be accessed on the company's website at 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 your inquiries to

   voestalpine AG

   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

   [1]www.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

    

   ══════════════════════════════════════════════════════════════════════════

   07.08.2024 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
   E-mail:      IR@voestalpine.com
   Internet:    www.voestalpine.com
   ISIN:        AT0000937503
   WKN:         897200
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1962363


    
   End of News EQS News Service


   1962363  07.08.2024 CET/CEST

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=e4aa18cc40b8f5ba473d7e034cd55b41&application_id=1962363&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=e4aa18cc40b8f5ba473d7e034cd55b41&application_id=1962363&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print