Financial key performance indicators

Despite the continuing difficult competitive situation in the European steel industry, the Steel Division was able to considerably improve its key figures in the business year 2014/15. Although the recessive price trend for iron ore, the most important raw material for the steel industry, continued throughout the entire business year, thus resulting in permanent price pressure from customers, the division’s revenue nevertheless improved in comparison to the business year 2013/14 by 1.7% going from EUR 3,809.7 million to EUR 3,873.9 million in the reporting period. This is due to a record delivery volume of 5.3 million tons, driven by a solid level of demand from the automotive industry and a temporarily stronger energy segment. As far as earnings are concerned, the improvements were much more significant. Increases in EBITDA and EBIT are primarily the result of an increase in volume, made possible mainly by an optimized plant operation mode in the rolling mill sector and severe cost management. Against this backdrop, the operating result (EBITDA) rose by 12.0% from EUR 402.0 million to EUR 450.3 million. Accordingly, the EBITDA margin went up from 10.6% to 11.6%. Profit from operations (EBIT) even gained 23.0%, rising from EUR 169.1 million to EUR 208.0 million. The EBIT margin therefore increased in the business year 2014/15 to 5.4% (previous year: 4.4%).

Quarterly development of the Steel Division

In millions of euros
Business year 2014/15

A comparison of the fourth quarter 2014/15 to the immediately preceding quarter shows an increase in revenue by 16.7% from EUR 909.2 million to EUR 1,061.2 million despite lower prices; this is due to a substantial increase in delivery volumes. In addition to these positive effects of the gratifying increase in volume, the solid earnings figures in the fourth quarter show the first visible effects of the ongoing efficiency and cost optimization program. Against this background, EBITDA in the fourth quarter was at EUR 142.1 million compared to EUR 97.2 million in the immediately preceding quarter, a boost of 46.2%. Accordingly, the EBITDA margin improved from 10.7% to 13.4%. At EUR 77.4 million (margin: 7.3%) compared to EUR 35.5 million (margin: 3.9%) in the immediately preceding third quarter.

As of March 31, 2015, the Steel Division had 11,103 employees (FTE); in comparison to the figure on the reporting date in the previous year (11,192 employees); this corresponds to a slight decrease of 0.8%.