voestalpine Triples Operating Result for Q1 of 2021-22
Against the backdrop of the good global economic environment, in the first quarter of the business year April 1 - June 30 2021 the voestalpine Group continued along its positive trajectory, which had already started in the previous business year. With the exception of the aerospace segment’s relatively subdued performance, all of the Group’s market and product segments delivered positive performance. The European automotive industry was still confronted with the semiconductor supply chain problems that had started at the turn of the calendar year; consequently, some automotive manufacturers had to stop production for short periods of time. Yet this did not trigger any noticeable decline in demand for voestalpine’s high-quality steel products. In the United States and China, voestalpine faced but few semiconductor-related production shutdowns. Conditions in certain segments of the oil & natural gas industry improved as well, but European production facilities are still affected by the protectionist Section 232 tariffs that still apply in the United States. The rail technology systems business segment continued to deliver stable performance. Orders in the storage technology business segment reached record highs due to the e-commerce boom.
Revenue rose year over year by 45.6%, from EUR 2.4 billion in Q1 2020/21 to EUR 3.5 billion in Q1 2021/22. Earnings also rose substantially in the current business year’s first quarter: EBITDA soared by 242%, from EUR 158 million to EUR 540 million. While EBIT was negative EUR 49 million in Q1 2020/21, it jumped to EUR 340 million in Q1 2021/22. The profit before tax rose in Q1 2021/22 to EUR 319 million and profit after tax to EUR 259 million.
Outlook - Even though the COVID-19 infection rates in Europe have been rising yet again, the economic forecasts for 2021 have become increasingly optimistic. Aside from additional re-opening steps, especially in the service sector, economic stimulus programs of historic proportions lead us to expect that the economic uptrend will continue. This positive assessment also applies to the voestalpine Group’s most important customer and market segments. Based on the Group’s results for the first quarter of the business year 2021/22 and the assumption that the current economic momentum will hold, at this time the Management Board of voestalpine AG thus expects EBITDA within a range of EUR 1,900 to EUR 2,200 million for the business year 2021/22.