Financial key performance indicators

In the first quarter of 2015/16, the Metal Engineering Division reported an increase in revenue of 13.9% from EUR 679.3 million to EUR 774.0 million, which was primarily the result of the initial full consolidation of voestalpine Tubulars GmbH & Co KG (Seamless Tubes business segment) and CNTT Chinese New Turnout Technologies Co., Ltd. (Turnout Systems business segment) as of April 1, 2015. Up to and including in the business year 2014/15, the equity method had been used by both companies to report financial results so that their earnings were not included in the voestalpine consolidated annual financial statements. Additionally, the acquisition of the Italian manufacturer of special wire Trafilerie Industriali S.p.A. in the fourth quarter of 2014/15 also contributed to the increase in revenue.

Non-recurring effects associated with the acquisition of full control of the two mentioned companies impacted the earnings of the division in the first quarter of 2015/16. In the first quarter of 2015/16, reassessments based on fair value less depreciation of hidden reserves resulted in positive non-recurring effects amounting to EUR 126.5 million reported in EBITDA and EUR 120.4 million reported in EBIT for the Metal Engineering Division. Therefore, the operating result (EBITDA) rose by a total of 121.3% from EUR 106.7 million to EUR 236.1 million. After deducting the non-recurring effects, EBITDA amounted to EUR 109.6 million, an increase of 2.7% compared to the previous year. This resulted in an adjusted EBITDA margin in the first quarter of 2015/16 of 14.2% compared to 15.7% in the same quarter of the previous year. The gain in profit from operations (EBIT) was even higher, going from EUR 79.6 million to EUR 197.2 million, an increase of 147.7%. Adjusted for the non-recurring effects, EBIT is EUR 76.8 million in the current business quarter, a decrease of 3.5% compared to the first quarter of 2014/15, and the EBIT margin went down from 11.7% to 9.9%.

As a result of the inclusion of employee figures of voestalpine Tubulars GmbH & Co KG and CNTT Chinese New Turnout Technologies Co., Ltd. as well as the acquisition of Trafilerie Industriali S.p.A., the number of employees (FTE) in the Metal Engineering Division rose by 16.4% to 13,097 (previous year: 11,250) in the first quarter of 2015/16.