Financial key performance indicators

In the business year 2015/16, the Metal Forming Division boosted its adjusted results significantly despite a decline in revenue. Weaker revenues were due to a portfolio streamlining in the Automotive Body Parts business segment in the business year 2014/15 (divestment of the Flamco Group, plastics companies, Rotec AB) on one hand and on the other, they are the result of generally recessive prices resulting from lower pre-material costs. A solid level of demand from the automotive industry and the division’s consistent expansion of its global presence had positive effects. Overall, revenue decreased in a year-over-year comparison by 4.7% from EUR 2,335.2 million to EUR 2,224.9 million. As far as earnings are concerned, the reported key figures in the year under review were lower than in the business year 2014/15, however, after deducting the positive non-recurring effects in the previous year (EUR 61.9 million reported in the operating result (EBITDA) and EUR 45.2 million reported in profit from operations (EBIT)) in connection with the aforementioned divestments, there is a marked operational improvement in a year-to-year comparison. All four business segments of the Metal Forming Division contributed equally to this result. It should be emphasized that it is due primarily to comprehensive cost optimization measures and contributions from expansion of business activities in China and the USA. The reported operating result (EBITDA) decreased in a year-over-year comparison by 12.3% from EUR 331.3 million (margin: 14.2%) to EUR 290.5 million (margin: 13.1%). The decline in the profit from operations (EBIT) was similar, falling by 11.9% from EUR 220.7 million (margin: 9.5%) to EUR 194.5 million (margin: 8.7%). Disregarding any non-recurring effects from the previous year, the operating result (EBITDA) improved by 7.8% compared with the previous year, going from EUR 269.4 million to EUR 290.5 million, while profit from operations (EBIT) rose by 10.8% from EUR 175.5 million to EUR 194.5 million. The adjusted EBITDA margin went up from 11.5% to 13.1%, while the adjusted EBIT margin increased from 7.5% to 8.7%.

The quarter-to-quarter comparison of the fourth quarter of 2015/16 with the immediately preceding quarter showed a very positive trend. The Metal Forming Division increased its revenue by 5.8% from EUR 543.4 million to EUR 575.1 million. The highest gain percentage-wise was achieved by the Tubes & Sections business segment, with an improvement of both prices and volumes. As far as earnings are concerned, the division reported an even more substantial upward trend; the excellent performance in the fourth quarter of 2015/16 is the result of contributions by all four business segments, which has created a strong foundation for the division. The main reasons for the boost were an improvement in the gross margin and an increase in delivery volumes. Against this backdrop, the operating result (EBITDA) grew by 26.5% from EUR 67.2 million in the third quarter of 2015/16 to EUR 85.0 million in the following quarter, with the EBITDA margin rising from 12.4% to 14.8%. In the same period, EBIT surged by 40.1% from EUR 42.9 million to EUR 60.1 million, with the EBIT margin growing commensurately from 7.9% to 10.5%.

As of the end of the business year 2015/16, the number of employees (FTE) in the Metal Forming Division was 10,470 or 1.4% above last year’s figure (10,328). The increase in headcount is the result of the acquisition of the Wickeder Steel Company in the USA and the expansion of project activities in the Warehouse & Rack Solutions business segment in the business year just ended.