Demand in many customer segments at the beginning of the new business year is much more positive than it was a year ago. “Taking the voestalpine Group results which reflect this economic trend as our basis, as of the start of the new business year, we expect a strong, significantly higher revenue and earnings performance for the first half of the year compared to the same period in the previous year. However, it will only be possible to evaluate the economic situation for the second half of the business year with more precision after the summer ahead,” says Wolfgang Eder.
Over the course of 2017/18, a whole series of recent major investments made by the voestalpine Group, such as the direct reduction plant in Texas, the new wire mill in Leoben, Donawitz, in Austria, and several downstream investments in Europe, the USA, and China, will be reflected in revenue and earnings for the first time. Already steel and steel processing are running at nearly full capacity, and will continue to do so through to the end of the business year, and consistent extension of the value chain generally leads to a comparatively stable business development. Furthermore, the impact of any US trade barriers and the pressure of steel imported into Europe at dumping prices should have a limited overall effect on voestalpine products. The Group-wide program of optimizing costs and raising efficiency currently being implemented is also expected to make the Group more competitive.