Voestalpine post net loss for FY 2019-2020, expects post-summer recovery

Wednesday, 03 June 2020 16:33:39 (GMT+3)   |   Istanbul
       

Austrian steelmaker voestalpine AG has posted a net loss of €216.5 million for the financial year 2019-20 ended March 31, when compared to a net profit of €459 million recorded in the previous financial year. In the financial year 2019-20, the revenues of the company amounted to almost €12.72 billion, down 6.2 percent year on year. In the given period, the company's EBITDA was €1.18 billion, decreasing by 24.5 percent year on year, while the EBITDA margin fell to 9.3 percent from 11.5 percent in the previous year.

The company stated that both revenue and earnings were affected by the economic meltdown, non-recurring effects, and the economic consequences of the coronavirus. Coupled with worldwide trade conflicts, these developments hit Europe’s export-driven industry, which accounts for about two-thirds of the company’s revenue, particularly hard. The automotive segment, which is important for voestalpine, slumped worldwide, while iron ore prices rose globally in the face of simultaneously falling steel prices.

On the other hand, Voestalpine will maintain its current programs that are aimed at cutting costs and boosting efficiency. “From today’s vantage point, a scenario that posits an improvement in the economy as a whole after the summer of 2020 is likely,” Voestalpine AG chairman Herbert Eibensteiner said. He said he also expects Voestalpine to generate EBITDA of between €600 million and €1 billion in the business year 2020-21, given the continued volatility of the economic environment. The company plans to reduce its investments to €600 million this year from €777 million in 2019-20 in response to the macroeconomic environment.


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