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Voestalpine Posts Record Revenue For The Business Year 2018-19

Steel News - Published on Fri, 07 Jun 2019

Image Source: Voestalpine
Following the record business year 2017/18, which produced all-time highs with respect to just about every key performance indicator of the voestalpine Group, the business year 2018/19 just ended was characterized by growing political and economic challenges. Mr Wolfgang EderWolfgang Eder Chairman of the Management Board of voestalpine AG said that the escalating trade war between the United States and China as well as other regions (including Europe) are the main causes of the increasing economic slowdown. In the European Union, Britain’s unproductive Brexit negotiations as well as the introduction of a new emissions test in the important automotive industry weighed additionally on economic sentiment. A number of negative internal non-recurring effects compounded the increasingly difficult macroeconomic environment. In particular, the volume losses in production stemming from the complete overhaul of the large blast furnace at the Group’s Linz facility, provisions that had to be set up in connection with ongoing cartel proceedings in the Heavy Plate business segment as well as difficulties related to the start-up of a new automotive component plant in Cartersville, Georgia, USA, had an impact on earnings for the year.

Highlights

Revenue rises 5.1% YoY, from EUR 12.9 billion to a new all-time high of EUR 13.6 billion

Negative external and internal non-recurring effects impact Group’s earnings categories

Operating result declines by 19.9% from EUR 1.95 billion to EUR 1.56 billion, with an EBITDA margin of 11.5%

Profit from operations drops by 33.9% from EUR 1.18 billion to just under EUR 780 million, with an EBIT margin of 5.7%

Profit before tax drops by 38.1% to EUR 646 million and profit after tax by 44.4% to EUR 459 million

At EUR 6.71 billion, equity reaches an all-time high (+2.4%)

At 46.6%, gearing ratio is largely stable

Increase of 0.6% in number of employees to 51,907

Dividend of EUR 1.10 per share proposed to the Annual General Meeting (previous business year: EUR 1.40 per share).

Outlook for the Business Year 2019/20
The Management Board of voestalpine AG is working hard to put the operating result in the 2019/20 business year on a stable footing compared with the previous year despite growing economic uncertainties.

Source :

Posted By : Sanju Moirangthem on Fri, 07 Jun 2019
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