EANS-News: voestalpine AG / Ramifications of the Covid-19 pandemic have massive impact on voestalpine’s earnings for Q1 2020/21 CNE

8/5, 7:29 AM (Source: euro adhoc)
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Quarterly Report

Linz -

* Massive meltdown in demand in almost all countries and sectors
* At EUR 2.4 billion, Group revenue for Q1 2020/21 is 28.1% lower than in the
  previous year (EUR 3.3 billion)
* Positive EBITDA of EUR 158 million (-58%)
* Negative EBIT of EUR -49 million (-131%)
* Profit before tax is EUR -74 million (previous year: EUR 124 million), and
  profit after tax EUR -70 million (previous year: EUR 90 million)
* Gearing ratio rises year over year from 58.1% to 71.7%
* Reduction in equity to EUR 5.5 billion (previous year: EUR 6.7 billion)
* Number of employees (FTE): 47,894 (-7.3%)

In the first quarter of the business year 2020/21 (April 1 to June 30, 2020),
voestalpine was affected by the massive meltdown in demand from almost all of
its customer segments on account of the Covid-19 pandemic. Not only the
standstill of the automotive industry, but also the general weakness of the
industrial sector-especially in Europe, where the Group generates about two-
thirds of its revenue-hit all four of its divisions. The strong downturn in
demand led to a decline in steel prices which, due to the strength of China's
steel industry, did not go hand-in-hand with a decline in iron ore prices, thus
intensifying the negative impact on earnings. Whereas the economies in North and
South America experienced substantial downturns as well, the Group's locations
in China returned to pre-pandemic capacity utilization during the reporting
period. "We managed to adapt very quickly to the completely new environment.
voestalpine succeeded in generating a positive operating result (EBITDA) for the
first quarter of the business year 2020/21 despite the extremely challenging
environment. This is due, above all, to our consistent cost management and the
rapid implementation of steps aimed at optimizing earnings within the Group on
the whole. In addition, we also still have adequate liquidity," says Herbert
Eibensteiner, Chairman of the Management Board of voestalpine AG.

The technology segments rail technology and high-bay warehouses continued to
develop along an absolutely solid trajectory in this difficult environment. The
latter benefited, in particular, from booming online commerce. Due to the
restrictions on air travel and the global reduction in the demand for energy,
however, the aerospace as well as the oil and natural gas industries were hit
particularly hard by the ramifications of the Covid-19 pandemic.

Development of revenue and earnings figures

The key performance indicators (KPIs) of the voestalpine Group for the first
quarter of the business year 2020/21 reflect the worldwide recession arising
from the Covid-19 pandemic. Hence revenue fell by 28.1% year over year, from EUR
3.3 billion to EUR 2.4 billion. In earnings terms, EBITDA dropped by slightly
more than one half year over year, from EUR 371 million to EUR 158 million, but
stayed in positive territory nonetheless. At EUR -49 million, profit from
operations (EBIT) was negative (previous year: EUR 157 million) but followed a
substantially positive trend most recently.The Group's profit before tax is EUR
-74 million (Q1 2019/20: EUR 124 million), while the profit after tax is EUR -70
million (Q1 2019/20: EUR 90 million). The gearing ratio (net financial debt as a
percentage of equity) climbed from 58.1% (year over year) or 67.2% (as of March
31, 2020) to 71.7% as of June 30, 2020. While net debt rose slightly from EUR
3.9 billion in the previous year to EUR 4 billion in the reporting period,
equity fell from EUR 6.7 billion to EUR 5.5 billion. Besides the negative non-
recurring effects in the third and fourth quarters of the previous business year
(2019/20), this development is due also to the redemption of a hybrid bond as of
October 31, 2019. The number of employees (FTE) in the voestalpine Group fell
year over year by 7.3% from 51,670 to 47,894 due to lower production capacity
utilization. In June 2020, about 10,400 voestalpine employees in Austria, about
2,600 in Germany, and about 2,300 internationally were registered for short time
work or similar models, e.g., in Great Britain, Romania, Belgium, France, and
the United States.

Outlook

The end of the lockdown in the first quarter of the business year 2020/21 led to
an incremental recovery in demand. The extent of the rebound depends on both
regions and market segments. The second business quarter is expected to see
seasonally slightly weaker demand over the summer, as usual, for example, due to
customer shutdowns. Hence a more informed assessment of both the strength and
the sustainability of this economic recovery will have to wait until the end of
the second business quarter. Given the ongoing volatility in an uncertain market
environment affected by Covid-19, the voestalpine Group will continue to focus
on cost management and earnings stabilization. At the same time, our efforts to
manage working capital will remain high and investments will remain low in order
to strengthen the Group's cash flow as well as its asset and capital structure.
"Against this backdrop, we will stick to our initial forecast expressed at the
start of the current business year pursuant to which the voestalpine Group is
expected to generate EBITDA of between EUR 600 million and EUR 1 billion in the
business year 2020/21," says Herbert Eibensteiner.

KEY FIGURES - voestalpine GROUP

 _____________________________________________________________________________
|(pursuant_to_IFRS)________|Q1_BY_2019/20________|Q1_BY_2020/21________|Change|
|__________________________|04/01/2019-06/30/2019|04/01/2020-06/30/2020|in_%__|
|Revenue___________________|3,336.1______________|2,397.3______________|-28.1_|
|EBITDA____________________|370.9________________|157.8________________|-57.5_|
|EBITDA_margin_in_%________|11.1_%_______________|6.6_%________________|______|
|EBIT______________________|156.7________________|-48.7________________|-131.1|
|EBIT_margin_in_%__________|4.7_%________________|-2.0_%_______________|______|
|Profit_before_tax_________|124.4________________|-74.4________________|-159.8|
|Profit_after_tax_*________|90.4_________________|-69.7________________|-177.1|
|Earnings_per_share________|0.44_________________|-0.40________________|-190.9|
|Gearing_ratio_in_%_(06/30)|58.1_%_______________|71.7_%_______________|______|
|In_millions_of_euros_________________________________________________________|


* Before deduction of non-controlling interests and interest on hybrid capital.

The Report of the first quarter of 2020/21 of voestalpine AG as of the June 30,
2020, may be accessed on the company's website at www.voestalpine.com [http://
www.voestalpine.com/] under the 'Investors' tab.
In case of questions, please contact the company's Investor Relations team at
+43/50304/15-9949.

Please direct any inquiries to:
voestalpine AG
Peter Felsbach
Head of Group Communications I Group Spokesperson
voestalpine-Strasse 1
4020 Linz, Austria
T. +43/50304/15-2090
peter.felsbach@voestalpine.com
www.voestalpine.com [http://www.voestalpine.com/]

Further inquiry note:
Peter Fleischer
Head of Investor Relations
Phone: +43/50304/15-9949
Fax:  +43/50304/55-5581
mailto:peter.fleischer@voestalpine.com
http://www.voestalpine.com

end of announcement                         euro adhoc
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issuer:       voestalpine AG
              voestalpine-Straße  1
              A-4020 Linz
phone:        +43 50304/15-9949
FAX:          +43 50304/55-5581
mail:         IR@voestalpine.com
WWW:          www.voestalpine.com
ISIN:         AT0000937503
indexes:      WBI, ATX
stockmarkets: Wien
language:     English

EAX0004    2020-08-05/07:29

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