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Ad-hoc News: voestalpine with second quarter below market expectation, adjustment of earnings expectations for business year 2018/19

24 October 2018 | 

With an EBITDA of EUR 860.1 million and an EBIT of EUR 479.5 million, the preliminary figures of the voestalpine Group for the first half of the business year 2018/19 are below the expectations of the market. Against this backdrop and due to the fact that the assumption made in the last outlook that the negative earnings effects of the blast furnace repairs (amounting to around EUR 150 million) can largely be offset is unlikely to occur, the Management Board of voestalpine AG today adjusted the outlook for the business year 2018/19 and from today’s point of view expects an EBIT of just under EUR 1 billion.

This is due in particular to the following factors:

    • Negative effects and distortions of international trade flows from the ever-increasing number of protectionist trade policies used by a large number of countries;
    • Distortions in the automotive sector which, inter alia, in Europe have been triggered by a new exhaust emission test procedure (WLTP) as of September 1, 2018, and related uncertainties;
    • Increased costs from the ramp-up of automotive activities in North America;
    • Unplanned shutdowns of the HBI plant in Texas, mainly as a result of flooding and a gas pipe break;
    • Increasing logistical challenges with inbound and outbound freights triggered by low water levels on European waterways.

 Accordingly, the reduced result and the factors described also have an effect on the development of the cash flow.

 The figures given are preliminary and unaudited.

The voestalpine Group

In its business segments, voestalpine is a globally leading technology group with a unique combination of material and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. It has been listed on the Vienna Stock Exchange since 1995. With its top-quality products and system solutions using steel and other metals, it is one of the leading partners to the automotive and consumer goods industries in Europe as well as to the aerospace and oil & gas industries worldwide. voestalpine is also the world market leader in turnout technology, special rails, tool steel, and special sections. In the business year 2017/18, the Group generated revenue of around EUR 13 billion, with an operating result (EBITDA) of almost EUR 2 billion; it has around 51,600 employees worldwide.