Voestalpine reports loss for Q3 FY 2020-21, revises EBITDA forecast for full year 

Tuesday, 09 February 2021 11:40:02 (GMT+3)   |   Istanbul
       

Austrian steelmaker Voestalpine AG has posted a net loss of €159 million for the third quarter ended December 31 of the financial year 2020-21, compared to a net loss of €160 million recorded in the third quarter of the previous financial year. In the third quarter of the financial year 2020-21, the revenues of the company amounted to almost €8 billion, down 16.8 percent year on year. In the given period, the company’s EBITDA was €683 million, decreasing by 18.4 percent year on year.

The company stated that its performance in the first nine months of the financial year 2020-21 was strongly shaped by the pandemic. While the financial year’s first quarter was characterized by the massive meltdown in demand in almost all customer segments and regions, the second quarter saw a considerable rebound in major sectors. Upward trends in key business segments continued in the third business quarter despite renewed lockdowns. The automotive industry, in particular, gradually recovered. The construction, consumer goods, and white goods industries also managed to rapidly return to pre-pandemic order levels.

“Our current performance in key customer segments has boosted our outlook. Our efforts with respect to cost savings and efficiency gains are having an effect. We are well positioned and even succeeded in stabilizing yet further in this difficult environment, substantially increasing the free cash flow, and decreasing our debt by one third. At the same time, we invested €450 million in our future. Positive market signals notwithstanding, it remains to be seen how the future course of the Covid-19 pandemic will affect the global economy,” Voestalpine AG chairman Herbert Eibensteiner said.

The number of Covid-19 infections rose dramatically yet again in most of the world during the third quarter. Individual EU member states have imposed lockdowns again; even in the United States restrictions were imposed on public life. So far none of these measures have had material adverse effects on the economic recovery of those markets that are relevant to the Voestalpine Group. However, the uncertainties about economic developments going forward have risen sharply. It is completely unclear to date how the expansion of limitations on commerce will affect the consumption of European products. The risk of downtimes in production or of interruptions in essential supply chains owing to the pandemic cannot be predicted at this time. Voestalpine Group stated that it will continue to focus on cost management and earnings stabilization. At the same time, the company’s efforts to manage working capital and curtailment of investments will continue. Assuming that there will be no new major restrictions on economic activity owing to the Covid-19 pandemic, the company currently forecasts EBITDA of about €1 billion for the entire business year 2020-21 and thus an amount at the upper end of the previously communicated range.


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