Outlook

Since the publication of the annual financial statements 2014/15 around two months ago, nothing has changed with regard to expectations for 2015/16. This applies both to the individual regions and to the most important customer industries. For the rest of the business year, it can be anticipated that North America will continue to enjoy stable development at a high level. China is dealing with increasing problems as it transitions from a state-driven to a consumption-driven economy, but it is expected to continue to have high growth rates in the future. India should gradually increase its growth momentum, while the current situation in Brazil and Russia does not offer any signs that there might be a trend reversal in the coming quarters. After a number of years of little or no growth, the European Union should attain economic growth of close to 2%; however, the development in the individual member states will differ widely from country to country.

The fundamental trends in the most important customer industries are not showing any significant changes compared to the last publication. The automobile industry continues to be stable and to perform at a high level, while the energy sector will be characterized by a high degree of volatility in the development of the oil price and persisting uncertainty surrounding the energy transition or energy paradigm shift. The subdued situation in the construction industry remains unchanged, however, there is a possibility of a certain degree of revival in the course of the year resulting from economic stimulus measures by the EU Commission (“Juncker package”). Development in the railway infrastructure and aviation sectors continues to be stable at a very high level, while the performance of the consumer goods, white goods, and electrical industries is unremarkable.

Against this backdrop, the development of the voestalpine Group in the coming months should continue to be characterized by almost full capacity utilization in all sectors, with the exception of the energy sector (oil/natural gas and power plant construction). It can be anticipated that the increasing differentiation resulting from the ongoing enhancement of the product portfolio with regard to both technology and quality along with the EUR 900-million program to optimize earnings that is gradually taking effect will enable further improvement of both the operating result (EBITDA) and profit from operations (EBIT)—before any non-recurring effects and changes in the scope of consolidation.