Voestalpine has an EBITDA outlook of €1.6-1.9bn for FY22 ending March 31, 2022, up 45-73pc compared to the EBITDA in FY’21.
The company’s Steel division restarted blast furnace No 5, made an important investment at Linz, Australia facility, and relined its kiln No 7 at its Steyrling, Austria facility in FY’21. The new special steel plant in Kapfenberg, Austria will have a cold-start in late 2021 with full operations expected by mid-2022. Voestalpine is also starting up the continuous casting plant (CC$) in Donawitz, Austria in FY’21.
Despite the effects from the COVID-19 business slowdown, the company improved liquidity and reduced liabilities due to a focus on lower costs and improved efficiency measures. Employee numbers fell by 2.1pc to 49,700 at the end of March against the workforce number in March 2020.
Voestalpine’s revenue fell by 11.4pc to €11.3bn in FY21 ending March 31, 2021, compared to €12.7bn in the prior fiscal year. Share of revenue was led by automotive 32pc, railway systems 13pc, energy 12pc, building/construction 10pc, mechanical engineering 9pc, and 24pc other.
EBITDA margin of 10.1pc was stronger than expected but dropped by 4pc to €1.1bn in FY21 resulting in EBIT or profit from operations of €115mn. The company was affected by impairment losses of €197mn attributed to Voestalpine Texas and the company’s Tubular divisions. Its other divisions, aerospace, oil, and natural gas, were affected more in the crisis.
Voestalpine plans to reduce carbon emissions in phases. Phase one may see reductions by 30pc till 2030; in the second phase, the company is making a gradual shift from blast furnace to electric arc furnace technology to achieve its carbon-neutrality goal by 2050. The company is investing €2.4bn towards environmental systems over 10yrs.