The business year 2022/23 concluded on a positive note, defying predictions of an economic decline. The global sentiment remains upbeat due to the successful containment of the COVID-19 pandemic, eased supply chain pressures, and reduced reliance on Russian energy sources in Europe. However, ongoing geopolitical tensions, inflation persistence, and interest rate hikes pose challenges.While central banks prioritize fighting inflation, their policies may eventually dampen economic growth. Outlooks for different economic regions and market segments vary significantly. The coming months will reveal the impact of China's shift from a strict zero-COVID policy on economic growth in the business year 2023/24. Rising interest rates in North America and Europe are expected to slow demand for voestalpine's products.Consumer goods, white goods, and construction industries are likely to experience subdued growth. The automotive sector should remain stable, supported by existing orders and improved supply chains. Demand in the conventional energy sector is projected to be good but not reach previous record levels. Conversely, the renewable energy and aerospace industries are expected to maintain their upward trajectory.The railway infrastructure market segment is anticipated to demonstrate stability and long-term growth due to investment needs and the global climate action trend. Assuming no major economic disruptions or escalation scenarios, voestalpine AG's Management Board forecasts EBITDA between EUR 1.7 billion and EUR 1.9 billion for the business year 2023/24.
The business year 2022/23 concluded on a positive note, defying predictions of an economic decline. The global sentiment remains upbeat due to the successful containment of the COVID-19 pandemic, eased supply chain pressures, and reduced reliance on Russian energy sources in Europe. However, ongoing geopolitical tensions, inflation persistence, and interest rate hikes pose challenges.While central banks prioritize fighting inflation, their policies may eventually dampen economic growth. Outlooks for different economic regions and market segments vary significantly. The coming months will reveal the impact of China's shift from a strict zero-COVID policy on economic growth in the business year 2023/24. Rising interest rates in North America and Europe are expected to slow demand for voestalpine's products.Consumer goods, white goods, and construction industries are likely to experience subdued growth. The automotive sector should remain stable, supported by existing orders and improved supply chains. Demand in the conventional energy sector is projected to be good but not reach previous record levels. Conversely, the renewable energy and aerospace industries are expected to maintain their upward trajectory.The railway infrastructure market segment is anticipated to demonstrate stability and long-term growth due to investment needs and the global climate action trend. Assuming no major economic disruptions or escalation scenarios, voestalpine AG's Management Board forecasts EBITDA between EUR 1.7 billion and EUR 1.9 billion for the business year 2023/24.
