Voestalpine reports profit for FY 2020-21, expects higher EBITDA for FY 2021-22

Voestalpine reports profit for FY 2020-21, expects higher EBITDA for FY 2021-22

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Austrian steelmaker Voestalpine AG has posted a net profit of €31.7 million for the financial year 2020-21 ended March 31, compared to a net loss of €216.5 million recorded in the previous financial year. In the given financial year, the revenues of the company amounted to €11.26 billion, down 11.4 percent year on year. In the given period, the company’s EBITDA was €1.13 billion, decreasing by four percent year on year.

The company stated that the financial year 2020-21 was defined by an economic downturn of historic proportions. While almost all customer segments saw demand disappear in the first quarter, starting from the second quarter demand for the company’s products rose once again despite renewed lockdowns in many markets and kept rising throughout the business year. The automotive industry, in particular, showed strength once it emerged from its coronavirus-induced low, triggering substantial growth in demand for high-quality steel products.

“The steps we took internally to cut costs and boost efficiency made a decisive contribution to the Group’s positive results for the year. Despite the economic crisis, Voestalpine now has more liquidity and less debt than just a year ago,” Voestalpine AG chairman Herbert Eibensteiner said.

According to Voestalpine’s statement, currently demand from almost all of the company’s important customer segments is high. Given positive demand, the company expects the economy to continue along its upward trajectory at least up to the end of the calendar year 2021. In addition, the trillions in the EU and US economic stimulus packages that aim to kick-start the economy are expected to provide an important impetus for growth after the end of the pandemic. The company expects EBITDA for the financial year 2021-22 of between €1.6 billion and €1.9 billion, assuming that the current economic momentum will continue and that there will be no new, unexpected distortions of the market.

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