Voestalpine Delivers Positive Results for Business Year 2020/21
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Voestalpine Delivers Positive Results for Business Year 2020/21

Austrian steel maker voestalpine announced that business year 2020/21 was defined by an economic downturn of historic proportions. It said “While almost

Austrian steel maker voestalpine announced that business year 2020/21 was defined by an economic downturn of historic proportions. It said “While almost all customer segments saw demand melt away in the first business quarter, starting in the second quarter demand for voestalpine products rose once again despite renewed lockdowns in many markets and kept rising throughout the business year. The automotive industry, in particular, showed surprising strength once it emerged from its COVID-19-induced low, triggering substantial growth in demand for high-quality steel products. Aerospace and oil & natural gas were hit particularly hard by the crisis. The Railway Systems business segment, by contrast, developed along a stable trajectory throughout the reporting period. The storage technology segment, for its part, posted all-time high orders thanks to booming online commerce.”

  1. Revenue declines by 11.4%, from EUR 12.7 billion in 2019/20 to EUR 11.3 billion

  2. Operating result, EBITDA, was almost stable at EUR 1.1 billion as against EUR 1.2 billion in 2019/20

  3. EBITDA margin was 10.1%

  4. Profit from operations, EBIT, was EUR 115 million again EUR –89 million in 2019/20

  5. Profit before tax of was EUR 11 million as against EUR –230 million in (2019/20

  6. Profit after tax was EUR 32 million as against EUR –216 million in 2019/20

voestalpine Chairman Mr Herbert Eibensteiner said “In addition to the economic tailwind, the steps we took internally to cut costs and boost efficiency made a decisive contribution to the Group’s positive results for the year. Despite the economic crisis, voestalpine now has more liquidity and less debt than just a year ago. The strengths of our business model were on full display yet again during the COVID-19 crisis. As a result, we will continue to focus on high-tech segments that meet highest quality requirements and drive innovation in collaboration with our customers.”

On the Outlook for the business year 2021/22, Mr Eibensteiner said “Currently, demand from almost all of voestalpine’s important customer segments is high; in fact, some areas seem to be overheating due to catch-up effects. Even the oil & natural gas industry, which was hit particularly hard by the crisis, is starting to rebound incrementally. The most that can be expected for the aerospace industry, however, is a slight improvement in the course of the business year 2021/22. Given positive demand, from today’s vantage point we may expect the economy on the whole to continue along its upward trajectory at least up to the end of calendar year 2021. This assessment also follows the forecasts of economic researchers. In addition, the trillions in EU and US economic stimulus packages that aim to kick start the economy are expected to provide important impetus for growth after the end of the COVID-19 pandemic. Assuming that the current economic momentum will continue and that there will be no new, unexpected distortions of the market, the Management Board of voestalpine AG expects EBITDA for the business year 2021/22 between EUR 1.6 billion and EUR 1.9 billion.”

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