Thanks to “very good demand” in most market segments and the “high price level” of the company’s own products, earnings after taxes rose by 47 percent to 715 million euros compared to the same period of the previous year in a “tendibly negative environment”, as the company announced on Wednesday. Sales grew by almost 37 percent from 6.8 to 9.3 billion euros.
“For the second half of our financial year, economic researchers are forecasting a further significant slowdown in the economy. With our global positioning and our industry diversification, we are optimally prepared,” said CEO Herbert Eibensteiner.
Management confirmed the recently raised forecast for the full fiscal year, which expires at the end of March. Due to the “excellent earnings development” in the first half of the year and in anticipation of an economic slowdown in the second half of the year, the Management Board expects – from today’s perspective – earnings before interest, taxes, depreciation and amortization (EBITDA) of between 2.3 and 2.4 billion euros, i.e. at the previous year’s level (2.3 billion euros).
This number includes positive one-time effects from a property sale expected in the current financial year in the amount of around 120 million euros. However, this outlook does not take into account “any unexpected economic upheavals from the further course of the war in Ukraine or any energy supply problems in Europe,” it was emphasized.
Gas supply optimized
voestalpine has optimized its gas supply to the best of its ability by storing gas itself and diversifying its own natural gas supply. “Currently, the European locations of the voestalpine Group obtain around half of their natural gas requirements from sources outside Russia,” says the Group. According to the information, the natural gas from the company’s own storage facility alone would be sufficient for full production for at least three months.
In the first half of the business year, the group recorded a very strong dynamic, especially in the supply of the energy sector “due to the high energy prices worldwide”, i.e. it earned it well. The clear upward trend in the aviation segment also continued. Despite difficulties in logistics, the railway infrastructure systems division developed solidly as usual.
However, the automotive industry continued to be “affected by bottlenecks in its supply chains and remained at a moderate level in Europe”. The general conditions at the non-European locations were better, especially in China the development was largely favorable despite extensive lockdowns.
Between April and September 2022, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 42 percent to EUR 1.4 billion compared to the same period of the previous year, and the EBITDA margin improved from 15 to 15.6 percent. The operating profit (EBIT) rose from 638 to 898 million euros, the margin from 9.4 to 9.7 percent. Earnings per share (EPS) jumped from EUR 2.65 to EUR 3.80.
voestalpine has equity of EUR 7.5 billion (previously: EUR 6.1 billion) and employs 50,374 people (full-time equivalents) worldwide – 2.7 percent more than a year ago. The gearing ratio (net financial debt in relation to equity) improved from 45.1 percent to 32.7 percent.
Source: Nachrichten
