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Financial key performance indicators

Key figures of the Steel Division

In millions of euros

 

2016/17

 

2017/18

 

Change
in %

 

 

 

 

 

 

 

Revenue

 

3,912.4

 

4,772.7

 

22.0

EBITDA

 

563.9

 

908.2

 

61.1

EBITDA margin

 

14.4%

 

19.0%

 

 

EBIT

 

263.2

 

592.9

 

125.3

EBIT margin

 

6.7%

 

12.4%

 

 

Employees (full-time equivalent)

 

10,898

 

11,020

 

1.1

The excellent performance of the Steel Division in the business year 2017/18 is immediately evident from the figures, particularly revenue as well as the operating result (EBITDA) which reached an unprecedented level—thanks also to the HBI plant in Texas, USA, which was almost fully operational this year for the first time. Revenue rose by 22.0% year over year from EUR 3,912.4 million in 2016/17 to EUR 4,772.7 million in 2017/18. While delivery volumes roughly matched the record volume achieved in 2016/17—due above all to excellent demand—the price of high-quality grades was significantly higher than in the previous year. The direct reduction plant in Texas, USA, which was officially inaugurated in October 2016 and has been in regular operation (subject to weather-related interruptions) since the beginning of the business year, as well as the Heavy Plate business segment, which succeeded in significantly boosting deliveries and simultaneously raising prices, have been key to the revenue growth in the current business year. Together with a general increase in the gross margin and a continued strong focus on cost optimization, these two business segments also contributed significantly to the improvement of the operating result (EBITDA) of the Steel Division by 61.1% as of the close of the year, from EUR 563.9 million to EUR 908.2 million. This lifted the EBITDA margin from 14.4% to 19.0%. Profit from operations (EBIT) soared 125.3%, from EUR 263.2 million to EUR 592.9 million, during the same period, almost doubling the EBIT margin from 6.7% to 12.4%.

Quarterly development of the Steel Division

In millions of euros

 

1st quarter 2017/18

 

2nd quarter 2017/18

 

3rd quarter 2017/18

 

4th quarter 2017/18

 

BY
2017/18

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

1,213.3

 

1,085.5

 

1,176.2

 

1,297.7

 

4,772.7

EBITDA

 

227.8

 

214.9

 

209.5

 

256.0

 

908.2

EBITDA margin

 

18.8%

 

19.8%

 

17.8%

 

19.7%

 

19.0%

EBIT

 

150.2

 

137.7

 

130.9

 

174.1

 

592.9

EBIT margin

 

12.4%

 

12.7%

 

11.1%

 

13.4%

 

12.4%

Employees (full-time equivalent)

 

10,810

 

10,905

 

10,879

 

11,020

 

11,020

In a direct quarter-to-quarter comparison between the third and fourth quarters of 2017/18, the Steel Division demonstrated a surge in both revenue and results, which stems primarily from the significant growth in delivery volumes, itself the result of traditionally rising demand during the first quarter of the calendar year. In light of the positive market environment, at the start of the calendar year the division succeeded in passing the preceding increases in raw material costs on to the market in connection with the fairly large number of renegotiated contracts. As a result, the Steel Division was able to boost its revenue by 10.3%, from EUR 1,176.2 million in the third quarter to EUR 1,297.7 million in the fourth quarter of the business year. EBITDA rose by 22.2% during the same period, from EUR 209.5 million to EUR 256.0 million, primarily due to the quarter-on-quarter increase in the sales volume of about 10%, while EBIT improved by as much as one third, from EUR 130.9 million to EUR 174.1 million. The EBITDA margin rose from 17.8% in the third quarter to 19.7% in the fourth quarter of 2017/18, while the EBIT margin increased in the same period from 11.1% to 13.4%.

As of March 31, 2018, the Steel Division had 11,020 employees (FTE), an increase of 1.1% compared with the figure (10,898 employees) as of on the previous year’s reporting date.


About voestalpine

In its business segments, voestalpine is a globally leading technology and capital goods group with a unique combination of material and processing expertise. With its top-quality products and system solutions using steel and other metals, it is a leading partner to the automotive and consumer goods industries in Europe and to the aerospace, oil and gas industries worldwide. The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections.

Facts

50 Countries on all 5 continents
500 Group companies and locations
51,600 Employees worldwide

Earnings FY 2017/18

€ 13 Billion

Revenue

€ 2 Billion

EBITDA

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