ENP Newswire -
Release date- 05062014 - Despite the continuing challenging economic situation, the voestalpine Group again demonstrated solid business development in the business year 2013/14 even though its performance did not quite measure up to the original expectations.
In a year-to-year comparison, revenue slipped by 2.6% from
The primary reason for this were declining price levels, triggered by dropping pre-material costs and continuing intense competition. A somewhat differentiated picture emerges, when one compares the development in the individual reporting categories with that of the previous year.
The fact that in the business year 2013/14 voestalpine was nevertheless able to maintain its profit before tax (
With a corporate tax rate that remained at 20.3%, profit for the period (net income) was
Earnings leadership expanded compared to industry competitors
Considering the economic environment and in comparison with other companies in the industry, the performance of the voestalpine Group in the past business year was rock solid.
A major reason for this achievement is the broad-based positioning of the Group, both geographically and with regard to its sectoral activities. However, it is primarily the unique combination of steel production and processing and the increasing utilization of other materials, such as aluminum and titanium that differentiate the Group more and more powerfully from the competition. In the last twelve years, we have developed from a classic steel company to a steel-based technology and capital goods group that is focused on the most technologically sophisticated customer segments. The performance of the Group's earnings, especially in a challenging economic environment, confirms ever more strongly that the strategy of extending the value chain based on premium steel products-and increasingly on products made of other materials as well-which voestalpine has been pursuing consistently, was the right path to take.'
Divisions focused on downstream activities ensure consistently good results
The largely stable development of the voestalpine Group, especially in comparison to traditional steel companies, is due to the Company's business model. This year again, the Metal Engineering and Metal Forming Divisions, with their portfolios that are focused on downstream products and applications, but also the Special Steel Division with its special products, ensured a business performance that was consistently gratifying.
Despite a difficult economic environment, the Metal Forming Division was able to substantially increase both EBITDA (+8.2%) and EBIT (+10.2%), while the results of the Special Steel Division (EBITDA -2.3%, EBIT +1.2%) and the Metal Engineering Division (EBITDA +0.6%, EBIT -0.2%) remained mostly stable at the previous year's level.
Thus, with regard to the key figures EBITDA and EBIT margin and ROCE that were maintained at a stable and high level, the Metal Engineering Division was again the best division in the Group. But the Metal Forming Division as well found markets for its business segments that demonstrated a solid level of demand, primarily for automobile parts and components. The Steel and Special Steel Divisions, which are more cyclical, were more strongly affected by the intermittently difficult market environment in
While the Special Steel Division, with its global positioning, was able to compensate the weaknesses in
Investments up to almost
Despite the difficult economic environment and another increase in the level of investment to
The solid operating results strengthen the Group's equity base even further. In concrete figures, equity rose by 3.7% from
Group's long-term strategy is being consistently implemented; internationalization process is on track
Ever since its IPO in 1995, but especially since the strategic realignment in the business year 2001/02, the voestalpine Group has consistently forged ahead with its strategy of value-added growth. This strategy has enabled the Group to take a leading position in
The focus of the Group's growth objectives is on the technologically sophisticated growth industries of mobility and energy (together they make up 62% of total revenue).
Geographically, the focus is primarily on growth markets outside of
Dividend rises from
Subject to the approval of the Annual General Shareholders' Meeting of
Cautiously optimistic outlook for the current business year 2014/15
After 2013, which was significantly weaker than experts anticipated, 2014 is expected to see not only a continued consolidation in those regions that are most important for the global economy for the first time since the 'crisis,' but also increasing momentum in economic growth. The fact that the global economic forecasts have been revised upward numerous times in recent months points to growing optimism with regard to the development of the global economy. Despite this improved economic environment, it would be premature to speak of a broad-based global trend reversal.
Indications of future demand from the most important customer industries point to a development that ranges from stable to moderately positive for the year. For example, signals from the construction and construction supply industries are conveying the prospect of a gathering recovery for the first time in years. While the overseas automobile industry reported solidly growing sales figures in the past year, the European automotive sector has joined this upward trend, increasingly across the entire range from high-end cars to sub-compacts.
As was the case in 2013, the energy sector is expected to remain the weakest of the major industrial sectors in 2014 as well. Apart from a largely stable development in the oil and natural gas exploration sectors, the energy transport segment (oil and natural gas pipelines) is expecting only a slight recovery in the form of execution of individual projects, some of which had been postponed multiple times. A more broad-based revival in this sector seems unlikely in 2014 as well. The same applies to the conventional energy generation segment, where-with the exception of
The consumer goods, white goods, and electrical industries are not expecting major changes and are anticipating a solid level of demand in 2014 as well. The agricultural machinery sector continues to experience good economic conditions, and the mechanical engineering sector has seen growing demand in recent months. The aviation industry and the overseas railway sector continue to enjoy a high level of demand.
Due to its specific, competitive position as a quality and technology leader in the production of high-end steel products, combined with its
The voestalpine Group
The voestalpine Group is a steel-based technology and capital goods group that operates worldwide. With around 500 Group companies and locations in more than 50 countries and on all five continents, the Group has been listed on the
The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections. In the business year 2013/14, the voestalpine Group reported revenue of
Most Popular Stories
- Criminal Investigation Opened Into James Foley's Death
- Is Diversity in the Eye of the Beholder?
- Apple Stock Bounces Back Big Time
- 'Mythbusters' Build Team Gets the Boot
- Investors Betting on ECB Stimulus Measures
- Jennifer Lopez Would Marry Again
- Florida Judge Rules in Favor of GOP Voter Map
- Mo'Ne Davis a Big Winner Despite Loss
- Hackers Get Homeland Security Employee Records
- DHS Warns Retailers About Malware in Cash Registers