This report is a translation of the original report in German, which is solely valid.
MARKET ENVIRONMENT AND BUSINESS DEVELOPMENT
The first three quarters of the business year 2023/24 were characterized by two very contrasting developments in the High Performance Metals Division. There were encouraging trends in the special materials product segment thanks to positive incoming orders from the oil and natural gas sector and the aerospace industry. The tool steel product segment faced a difficult market environment – primarily due to weak demand from the automotive and consumer goods industries.
Tool Steel
Incoming orders from the European core markets—particularly Germany and France—were subdued in the first three quarters. Demand from the automotive industry in particular weakened due to model shifts. The standard grade area was confronted with strong price pressure due to the high import ratio. New business in the North American market also declined in the first three quarters of the business year 2023/24. In Brazil/South America, the general economic slowdown was felt, resulting in slightly weaker demand towards the end of the reporting period. China and Southeast Asia were characterized by low momentum. There was a continued reluctance to build new homes, which slowed down the consumer goods sector in particular.
Special Materials
The positive trend in the aerospace industry continued in the reporting period. In some cases, demand from aircraft manufacturers still exceeded capacity in the global supply chains. The global oil and natural gas industry also continued to invest. Orders from the commercial vehicle industry stabilized at a good level.
High Performance Metals Production
The units for the production of special materials in the upper quality segment were fully utilized in the first three quarters of the business year. By contrast, the production sites with a strong focus on tool steel reported lower capacity utilization rates. One milestone was the start of the ramp-up phase of the new stainless steel plant in Kapfenberg (Austria) in the first quarter of 2023/24. The old steel plant at the Kapfenberg site was decommissioned towards the end of the 2023 calendar year.
Value Added Services
In the first three quarters of the business year 2023/24, the division’s global sales network recorded a significant decline in volumes in the European core markets as a result of the weak market for tool steel. This development was particularly pronounced in Germany. Conditions were slightly better in North America and Asia, where sales volumes fell less sharply. The sales and service area performed positively worldwide in the aerospace sector and the oil and natural gas industry.
DEVELOPMENT OF THE KEY FIGURES
In millions of euros |
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Q 1 – Q 3 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Q 1 |
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Q 2 |
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Q 3 |
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2023/24 |
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2022/23 |
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Change in % |
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|
04/01– 06/30/2023 |
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07/01– 09/30/2023 |
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10/01– 12/31/2023 |
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04/01– 12/31/2023 |
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04/01– 12/31/2022 |
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|
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Revenue |
|
934.4 |
|
853.3 |
|
827.1 |
|
2,614.8 |
|
2,783.8 |
|
–6.1 |
EBITDA |
|
96.4 |
|
46.8 |
|
56.2 |
|
199.4 |
|
324.3 |
|
–38.5 |
EBITDA margin |
|
10.3% |
|
5.5% |
|
6.8% |
|
7.6% |
|
11.6% |
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|
EBIT |
|
55.1 |
|
3.9 |
|
13.6 |
|
72.6 |
|
35.8 |
|
102.8 |
EBIT margin |
|
5.9% |
|
0.5% |
|
1.6% |
|
2.8% |
|
1.3% |
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|
Employees (full-time equivalent), end of period |
|
13,560 |
|
13,492 |
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13,308 |
|
13,308 |
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13,390 |
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–0.6 |
Revenue in the High Performance Metals Division fell by 6.1% to EUR 2,614.8 million in the first three quarters of the business year 2023/24 (Q 1 – Q 3 2022/23: EUR 2,783.8 million). The main reason for this was the subdued sales of tool steel products. The price level was even slightly better than in the previous year. The product mix was also more favorable in the current reporting period. The High Performance Metals Division recorded a decline in EBITDA, which fell by 38.5% from EUR 324.3 million (margin of 11.6%) in Q 1 – Q 3 2022/23 to EUR 199.4 million (margin of 7.6%) in the reporting period. This was mainly due to lower production and sales volumes. The high energy costs were at least partially cushioned by government support programs. EBIT almost doubled: from EUR 35.8 million (margin of 1.3%) to EUR 72.6 million (margin of 2.8%). However, EBIT for the first three quarters of 2022/23 included impairment losses of EUR 173 million.
The High Performance Metals Division also recorded a drop in revenue in a quarter-on-quarter comparison – triggered by a slight decline in sales volumes. Specifically, revenue decreased by 3.1% to EUR 827.1 million in the third quarter of 2023/24 (Q 2 2023/24: EUR 853.3 million). EBITDA increased by 20.1% in the third quarter of 2023/24 from EUR 46.8 million (margin of 5.5%) in the immediately previous quarter to EUR 56.2 million (margin of 6.8%). Declining delivery volumes were offset by a slight improvement in the gross margin. The government energy cost subsidies also had a positive effect in the current reporting quarter. EBIT improved in the third quarter by 248.7% from EUR 3.9 million (margin of 0.5%) to EUR 13.6 million (margin of 1.6%).
The number of employees (FTE) in the High Performance Metals Division fell to 13,308 as of December 31, 2023, a decrease of 0.6% (previous year: 13,390).