Development of the key figures

When discussing the financial key figures of the Metal Engineering Division compared to the previous year, it should be noted that the previous year’s figures (business year 2011/12) were adversely impacted by non-recurring effects in the amount of EUR 205.0 million. Provisions in this amount, which were recognized in income, were set aside for risks in connection with the rail antitrust proceedings and for the closure of the standard rail production in Duisburg (see also the “Significant events in the course of the year” chapter in the Management Report.

At EUR 2,913.6 million, revenue in the business year 2012/13 was only slightly below last year’s figure (EUR 2,955.6 million). The operating result (EBITDA) of EUR 210.3 million was more than doubled to EUR 434.6 million. Adjusted for the previously cited non-recurring effect in the amount of EUR 205.0 million, the EBITDA figure is still 4.6% higher. The EBITDA margin for the year under review is 14.9%, compared to 7.1% (adjusted figure 14.1%) in the previous year. With a gain of EUR 96.9 million to EUR 319.6 million, profit from operations (EBIT) more than tripled in the year under review. Therefore, the EBIT margin rose from 3.3% to 11.0%. Without taking the non-recurring effects into account, EBIT would still have risen by 5.9% and the previous year’s EBIT margin would have been at 10.2%.

Comparing the fourth quarter 2012/13 with the immediately preceding quarter (Q3 2012/13), there is a slight decline in revenue (–2.7% from EUR 693.3 million in Q3 to EUR 674.4 million in Q4), however, at the same time, there is a significant increase in earnings and profit. The rise in earnings in the fourth quarter for the Railway Infrastructure segment, despite the customary seasonal effects, is due mainly to the improvement in the performance of the Wire business segment, but the Seamless Tube and Welding Consumables business segments were also able to maintain their earnings level into the new calendar year.

Against this backdrop, the operating result (EBITDA) of EUR 104.0 million in Q3 2012/13 was increased to EUR 124.2 million in the fourth quarter, a gain of 19.4%. This means that in the fourth quarter, the Metal Engineering Division achieved an EBITDA margin of 18.4% compared to 15.0% in the third quarter.

Profit from operations (EBIT) even surged by 26.3% from EUR 74.5 million in the third quarter to EUR 94.1 million in the fourth quarter. As a result, the EBIT margin in the fourth quarter was 14.0% compared to 10.7% in the immediately preceding quarter.

As of March 31, 2013, the Metal Engineering Division had 11,374 employees (FTE/full-time equivalent), remaining largely stable compared to the previous year (11,344 employees).