Financial key performance indicators

Thanks to the relatively stable performance of the Railway Systems business segment, the Metal Engineering Division succeeded in limiting the impact of COVID-19 on its key performance indicators (KPIs). The Industrial Systems business segment accounts for almost the entirety of the decrease in the division’s revenue by 9.3% to EUR 2,667.3 million in the business year 2020/21, down from EUR 2,941.7 million in the business year 2019/20. Particularly the tubulars product segment had to contend with strong declines. The wire technology product segment for its part was confronted with the weakening of its delivery ­volume due to the meltdown of the European auto­motive supplier industry in the reporting period’s first half but managed to boost deliveries year over year in the second half. Rapid implementation of efficiency and cost measures as well as governmental support programs related to COVID-19 made it possible to curb Industrial Systems’ decline in earnings. The division’s EBITDA dropped by 23.7% to EUR 229.7 million (margin of 8.6%) in the business year 2020/21, down from EUR 301.1 million (margin of 10.2%) in the business year 2019/20. EBIT dropped during the same period by more than one half to EUR 16.3 million (margin of 0.6%), down from EUR 32.9 million (margin of 1.1%) in previous business year. The reported results for both the previous and the current reporting period contain non-recurring effects. A total of EUR 5 million in negative non-recurring effects impacted EBITDA in the business year 2019/20. In addition, the tubulars and welding segments both recognized impairment losses that additionally affected EBIT to the tune of EUR 83 million. A total of EUR 34 million in impairment losses (most of which are attributable to the tubulars product segment) were taken for the business year 2020/21.

The quarter-on-quarter (QoQ) comparison of the reporting period’s third and fourth quarters shows that the Metal Engineering Division managed to improve its KPIs. Revenue rose by 13.5%, from EUR 623.7 million in the third quarter to EUR 707.7 million in the fourth. While the tubulars product segment succeeded in bringing about a massive QoQ increase in its deliveries, the wire technology and welding product segments posted significant increases in their sales volume. Price increases in both the wire and the seamless tubes markets contributed to the QoQ revenue increase, and Railway Systems continued along its stable trajectory toward the end of the business year 2020/21 also. The rising business volume goes hand in hand with an increase in earnings. ­EBITDA more than doubled in the fourth quarter to EUR 72.2 million, up from EUR 47.2 million in the third, thus also raising the EBITDA margin from 7.6% to 10.2%. EBIT improved by multiples between the third and the fourth quarter of the reporting period, from EUR 1.8 million to EUR 24.1 million.

The number of employees (FTE) in the Metal Engineering Division was 13,145 as of the end of the business year 2020/21, a decline of 1.2% from 13,310 as of the close of the business year 2019/20. This reduction in personnel reflects the weakening ­demand in both the tubulars and the wire technology product segments.