As far as the voestalpine Group is concerned, the macroeconomic
environment has clouded over significantly since the start of the
business year 2019/20. By and large, this is due to the fallout from the
international trade conflicts and the associated, growing weakness of
the global economy, which affects above all Europe’s export-oriented
industries, and the slumping automotive industry in particular.
Furthermore, strong increases in iron ore prices in a weakening market
along with falling prices for steel products as well as rising costs for
CO2 emission
certificates in the EU put pressure on profit margins.
Development of revenue and earnings figures
At EUR 3.3 billion, voestalpine’s revenue for the first quarter of the
business year 2019/20 was 3.8% lower than the revenue of EUR 3.5 billion
for the first quarter of the previous business year. All four of the
Group’s divisions were confronted with a slight decline in revenue
resulting mainly from declining delivery volumes. Aside from the
reductions in the sales volume stemming from economic developments as
well as the increases in both iron ore prices and CO2 emission certificates, the start-up costs at the
Group’s automotive plant in Cartersville, USA, also put downward
pressure on earnings in the reporting period.
As a result, the EBITDA of the voestalpine Group declined by 27.7%, from
EUR 513.0 million to EUR 370.9 million.
The gearing ratio (net financial debt as a percentage of equity) rose
from 49.0% as of June 30, 2018 to 58.1% as of June 30, 2019. For the
most part, this increase in the first quarter of the business year
2019/20 stems from changes in international financial reporting
requirements (recognition of leases pursuant to IFRS 16), which raised
the interest-bearing liabilities by about EUR 437 million compared with
the annual reporting date.
Table: Voestalpine Group Key Figures
in millions of euros |
Q1 by 2018/19
(04/01/2018 - 06/30/2018) |
Q1 by 2019/20
(04/01/2019 - 06/30/2019) |
Change in % |
Revenue |
3,469.00 |
3,336.10 |
-3.8 |
EBITDA |
513 |
370.9 |
-27.7 |
EBITDA margin |
14.80% |
11.10% |
|
EBIT |
323.8 |
156.7 |
-51.6 |
EBIT margin |
9.30% |
4.70% |
|
Profit before tax |
294.3 |
124.4 |
-57.7 |
Profit afer tax |
226.3 |
90.4 |
-60.1 |
EPS - Earnings per share (euros) |
1.21 |
0.44 |
-63.6 |
Gearing ratio in % (06/30) |
49.00% |
58.10% |
|
Source from
voestalpine |
(To contact the reporter on this story: leo.ji@steelhome.cn or 86-555-2238932) |