Financial key performance indicators

Quarterly development of the Steel Division





In millions of euros















1st quarter 2019/20


2nd quarter 2019/20


3rd quarter 2019/20


4th quarter 2019/20






in %














































EBITDA margin


12.7 %


9.6 %


8.8 %


11.9 %


10.8 %


13.4 %


















EBIT margin


5.1 %


1.8 %


–17.6 %


1.0 %


–2.2 %


6.5 %



Employees (full-time equivalent)















Year over year, the Steel Division’s revenue fell by 6.5%, from EUR 4,887.3 million in the business year 2018/19 to EUR 4,570.5 million in the business year 2019/20. Delivery volumes were stable despite the economic downturn. Note that the corresponding figure for the previous year already was some 10% below that for the business year 2017/18 owing to the overhaul of the division’s largest blast furnace. The decline in revenue thus stems from falling prices. While prices gradually lost ground throughout the business year ended, the cost of pre-materials—i.e., the price of the division’s most important raw material, iron ore—rose sharply from time to time. This means that the Steel Division was confronted with an extremely challenging environment in the reporting period. The declines in the individual earnings categories significantly exceeded those on the revenue side against this backdrop. EBITDA fell by 24.4%, from EUR 653.2 million (margin of 13.4%) in the business year 2018/19 to EUR 494.0 million (margin of 10.8%) in the business year 2019/20. Aside from the overhaul of the blast furnace, the previous year’s earnings were also affected by provisions related to an investigation by the German Federal Cartel Office (Bundeskartellamt) in the heavy plate product segment.

At EUR –100.6 million, the Steel Division’s EBIT for the reporting period was negative, down from EBIT of EUR 319.0 million in the previous business year. Negative non-recurring effects of EUR 240 million for the business year 2019/20 must also be taken into account in this connection; they comprise impairment losses at the direct reduction plant in Texas, USA, and at the Foundry Group. This caused the EBIT margin to decline from 6.5% in the previous year to –2.2% in the reporting period.

The quarter-on-quarter comparison (QoQ) between the business year’s third and fourth quarters shows a considerable uptrend in the Steel Division’s performance despite the initial negative fallout from the COVID-19 pandemic. Following the value chain inventory reductions in the third business quarter, customers’ order call-ups improved after the X-Mas break. Specifically, revenue rose by 4.9%, from EUR 1,098.0 million to EUR 1,151.4 million, due to the increase in the QoQ sales volume. In earnings terms, lower raw material costs offset falling product prices. EBITDA jumped by 41.7% in consequence, from EUR 96.6 million (margin of 8.8%) in the third quarter of the business year 2019/20 to EUR 136.9 million (margin of 11.9%) in the fourth quarter.

Impairment losses of EUR 200 million in the third quarter and of EUR 40 million in the fourth quarter at the Texas plant as well as the Foundry Group impacted EBIT. It is against this backdrop that the division’s EBIT improved quarter on quarter from EUR –193.1 million (margin of –17.6%) to EUR 11.5 million (margin of 1.0%).

As of March 31, 2020, the Steel Division had 10,419 employees (FTE), a decrease of 4.2% compared with the figure (10,877 employees) as of the previous year’s reporting date. This reduction is due to the adjustments in personnel that were made on account of the difficult market environment.

About voestalpine

In its business segments, voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. It has been listed on the Vienna Stock Exchange since 1995. With its top-quality products and system solutions, it is a leading partner to the automotive and consumer goods industries as well as the aerospace and oil & gas industries, and is also the world market leader in railway systems, tool steel, and special sections. voestalpine is fully committed to the global climate goals and is working intensively to develop technologies which will allow it to decarbonize and reduce its CO2 emissions over the long term. In the business year 2019/20, the Group generated revenue of EUR 12.7 billion, with an operating result (EBITDA) of EUR 1.2 billion; it had about 49,000 employees worldwide.


50 Countries on all 5 continents
500 Group companies and locations
49,000 Employees worldwide

Earnings FY 2019/20

€ 12.7 Billion


€ 1.2 Billion


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