In This Article:
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Revenue: Down EUR650 million compared to the first nine months of the prior year.
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EBITDA: Decreased by approximately EUR300 million.
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EBIT: One-off items totaling EUR170 million, including EUR80 million from the sale of Buderus and over EUR30 million from restructuring costs in automotive components.
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Profit After Tax: EUR277 million, down from EUR450 million the previous year.
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Gross Margin: Increased by EUR54 million, primarily due to lower raw material and energy costs.
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Cash Flow from Investing Activities: EUR750 million, with EUR110 million allocated to the greentec steel project.
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Free Cash Flow: Expected to be slightly above EUR100 million.
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Net Debt to EBITDA Ratio: 1.4, indicating a sound financial structure.
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CapEx: Projected to be below EUR1.2 billion for the next fiscal year.
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EBITDA Forecast: Revised to EUR1.3 billion, including EUR200 million in one-offs.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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voestalpine AG (VLPNY) is focusing on decarbonization, with plans to replace two blast furnaces with electro arc furnaces, a project with a CapEx of EUR1.5 billion.
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The company is benefiting from internationalization and local-for-local production strategies, with investments in the US to avoid tariffs and improve logistics.
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High technological leadership and focus on high-quality products are emphasized, moving away from commodities.
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Successful divestment of Buderus, a loss-making activity, allows voestalpine AG (VLPNY) to focus on high-end tool steel and special steel metals.
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Positive performance in North America, particularly in railway systems, aerospace, and warehouse solutions, despite challenges in other markets.
Negative Points
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Revenue decreased by EUR650 million compared to the previous year, with one-third due to lower volumes and mix deviations, and two-thirds due to price issues.
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EBITDA and EBIT are down by roughly EUR300 million, with non-recurring items and restructuring costs impacting results.
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The automotive components business is facing challenges, leading to restructuring and recognition of more than EUR30 million in restructuring costs.
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The European market remains weak, with no recovery expected in the coming months, impacting voestalpine AG (VLPNY)'s performance.
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The company faces potential impacts from US tariffs, particularly affecting the OCTG business and high-performance metals, with estimated costs of EUR30 million to EUR40 million.
Q & A Highlights
Q: What is driving the weakness in the German OEMs in China? Is it lower volumes, prices, or higher costs? A: Herbert Eibensteiner, CEO: The weakness is mostly due to lower volumes.