The development of the Metal Engineering Division during the first half of the business year 2014/15 was characterized by stable demand at a high level, thus continuing the positive performance of the past quarters.
In the past six months, the Rail Technology business segment maintained its robust performance. The recovery of the European market compensated the weakening of some of the international markets so that the rail production facilities maintained full capacity utilization.
The Turnout Systems business segment continued its excellent performance, a result of very satisfactory demand in practically all global regions. While there has been a slowdown in demand from the mining sector in South America, the mass transit sector showed widespread positive impulses. In Europe, the market for turnout systems performed at a good level, analogously to the rail sector. Overseas markets in North America, Asia, and most recently India were marked by outstanding demand levels.
In the most recent quarter, the Wire Technology business segment profited from continuing strong demand by the automobile industry for special drawn wire, resulting in a very good performance with capacity being almost fully utilized.
Demand in the seamless tube segment was also stable at a high level, as it profited from continuing high output of oil and natural gas in North America. However, should the most recent softening of the oil price continue, it can be expected that the market will cool down.
The Welding Technology business segment performed very well outside of Europe, especially in North America, India, and Southeast Asia. Performance in Europe, however, was impacted by the general economic listlessness.