EQS-News: voestalpine AG: voestalpine records very good results for Q3 2022/23 despite challenging environment

EQS-News: voestalpine AG / Key word(s): Quarterly / Interim Statement
voestalpine AG: voestalpine records very good results for Q3 2022/23
despite challenging environment

08.02.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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voestalpine records very good results for Q3 2022/23 despite challenging
environment

• At EUR 13.6 billion, revenue for Q1 to Q3 2022/23 is 29.3% higher than
in the previous year (EUR 10.5 billion)
• EBITDA climbs by 23.4% to EUR 1.9 billion (previous year: EUR 1.5
billion)
• EBIT increases year over year, from EUR 955 million to EUR 1.1 billion
• Profit before tax at EUR 1.1 billion (previous year: EUR 901 million)
and profit after tax at EUR 864 million (previous year: EUR 698
million)
• Equity rises significantly to EUR 7.6 billion (previous year: EUR 6.3
billion)
• Gearing ratio improves year over year, from 46% to 35.1%
• Number of employees stands at 50,018 FTE (+1.8%)
• Outlook for EBITDA increases to around EUR 2.5 billion

The international steel and technology group profited from its global
positioning and industry diversification in the first three quarters of
the business year 2022/23 (April 1 to December 31), allowing it to
generate very good results compared to the previous year in an overall
challenging environment. In the first nine months of the current business
year, performance was particularly good in the energy sector, with
international demand for voestalpine products continuing to grow, also in
the solar industry. The clearly positive trend of the first three quarters
was also reflected in the aerospace segment, primarily driven by
increasing demand for single aisle aircraft used in regional air traffic.
In the reporting period the Railway Systems business segment profited in
particular from the high demand for rails in the core European markets.
Demand for turnouts remained solid outside Europe. By contrast, the white
goods and consumer goods industry as well as the construction industry had
to contend with slowing momentum. The automotive industry continued to be
hampered by ongoing supply chain bottlenecks. In Europe, there was no
significant increase in call-ups from automotive customers. The business
environment at the Group’s facilities overseas was better, with generally
favorable economic conditions especially in China. In the storage
technology segment, the first nine months of the business year continued
to enjoy a solid basis.

“In the first nine months of the current business year there was extremely
strong demand for our high quality products, especially in the Energy,
Aerospace, and Railway Systems segments. We also succeeded in passing on
the rising costs of raw materials and energy in most business segments.
The very good results are once again a reflection of our global
positioning and sectoral diversification,” says Herbert Eibensteiner, CEO
of voestalpine AG.

Development of revenue and earnings
In the first nine months of the business year 2022/23 the voestalpine
Group succeeded in boosting revenue by 29.3% year on year, from EUR 10.5
billion to EUR 13.6 billion. EBITDA rose by 23.4%, from EUR 1.5 billion to
EUR 1.9 billion. EBIT climbed by 19.4% over the previous year, from EUR
955 million to EUR 1.1 billion, despite impairment losses totaling EUR 173
million taken in the High Performance Metals Division in the second
quarter (as previously reported). Profit before tax for the reporting
period grew over the first three quarters of 2022/23, to EUR 1.1 billion—a
16.9% rise over the same period in the previous year (EUR 901 million).
Profit after tax jumped by 23.9% to EUR 864 million (previous year: EUR
698 million). Equity as of 12/31/2022 is EUR 7.6 billion (+20.6%). Net
financial debt fell 8% to EUR 2.7 billion within one year. The gearing
ratio (net financial debt as a percentage of equity) was reduced year over
year, from 46% to 35.1%. The number of employees (FTE) in the voestalpine
Group rose 1.8% year over year, from 49,157 to 50,018.

Outlook
The economic sentiment was very good at the start of the business year
2022/23, but rapidly weakened as the year wore on. Economic growth then
slowed dramatically in the business year’s third quarter. Nonetheless,
both economic indicators and actual business performance turned out to be
more resilient than initially forecast.

Aside from a slight easing of inflationary pressures, the very fact that
energy supplies in Europe remained intact contributed to the improvement
in economic sentiment. Although economic researchers posit that the
economic sentiment reached its lowest point in the third quarter of the
business year 2022/23, the forecasts regarding both consumption and
investments in the short and medium term remain subdued.

In this generally challenging economic environment, the voestalpine Group
relies yet again on its broad positioning in different market segments and
economic regions.

While the uncertainties in Europe still outweigh those elsewhere,
especially owing to the war in Ukraine, the forecasts for North America
now only expect a mild recession, if that. Brazil elected a new president,
but the country’s future economic policies are still not clear, even
though the current environment is very stable. Economic developments in
China at this time are being shaped by the complete reversal of the
country’s COVID policies. A massive wave of COVID-19 infections already
engulfed the country toward the end of the reporting period; its economic
ramifications are likely to affect the fourth business quarter also.

As far as markets are concerned, the upward trend in the energy and
aerospace segments is expected to continue during the remainder of the
business year 2022/23. Railway infrastructure is also expected to continue
benefiting from very good demand. Developments in the automotive industry,
which has still not been able to really solve its supply chain problems,
will largely remain stable. This forecast also applies to the mechanical
engineering industry, which continues to benefit from very strong order
levels. The consumer goods industry already weakened substantially in the
course of the reporting period, and demand in this sector is expected to
be lower overall in the company’s last business quarter. Slowing demand in
the construction industry is likely to continue in the fourth business
quarter.

At this time, the Management Board of voestalpine AG expects EBITDA of
about EUR 2.5 billion for the entire business year 2022/23. This figure
includes around EUR 120 million in positive non-recurring effects from the
sale of property in the fourth business quarter. However, the closing of
this transaction is still contingent on administrative authorizations.

Key figures of voestalpine Group

  Q1-Q3 2021/22* Q1-Q3 2022/23 Delta %
  04/01/-12/31/2021 04/01/-12/31/2022  
Revenue 10,503.5 13,585.2 +29.3
EBITDA 1,523.2 1,879.0 +23.4
EBITDA margin in % 14.5% 13.8%  
EBIT 954.5 1,140.0 +19.4
EBIT margin in % 9.1% 8.4%  
Profit before tax 900.6 1,052.6 +16.9
Profit after tax from 705.5 770.4 +9.2
continuing operations
Profit after tax from -7.9 93.8  
discontinued operations
Profit after tax ** 697.6 864.2 +23.9
EPS-earnings per share (euros) 3.81 4.46 +17.1
Gearing-ratio in % (12/31) 46.0% 35.1%  
In millions of euros

*Q1-Q3 2021/22 retroactively adjusted. For further details, see Annual
Report 2021/22.
**Before deduction of non-controlling interests.

voestalpine AG’s 1^st- 3^rd quarter results BY 2022/23 as of December 31,
2022, may be viewed on the Company’s website, [1] www.voestalpine.com,
under the “Investors” tab.

If you have any questions, please contact the Investor Relations Team at
+43/50304/15-9949.

Further inquiry note:
voestalpine AG
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

voestalpine AG
Mag. Peter Felsbach, MAS
Head of Group Communications I Konzernsprecher
voestalpine-Straße 1
4020 Linz, Austria
T. +43/50304/15-2090
peter.felsbach@voestalpine.com
[3] www.voestalpine.com

 

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08.02.2023 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: 1552915

 
End of News EQS News Service

1552915  08.02.2023 CET/CEST

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