Market environment and business development
The Metal Forming Division experienced varied performance across its market segments and regions in the 2024/25 reporting year. Europe showed the weakest momentum, with positive trends only emerging late in the year, while demand in North and South America and China was significantly stronger. The Automotive Components business segment faced weak demand, particularly in Europe, with a global slowdown emerging toward the end of the financial year.
The 2024/25 financial year was challenging overall for the Automotive Components business segment, especially in Europe, where low capacity utilization persisted from the beginning of the reporting period and worsened after summer 2024 following profit warnings from major customers. In response, the management launched a comprehensive reorganization program at an early stage, which included the planned closure of a German plant and consolidation of other German sites into a streamlined production network. This restructuring aims to realize cost and synergy potential while focusing and strengthening resources to advance the technological development of processes and the product portfolio.
International Automotive Components plants in China and the USA began the year with solid capacity utilization, but both markets saw declining customer call-offs as the year progressed. The Chinese Automotive Components sites were particularly affected in the second half of the financial year.
The Tubes & Sections business segment benefited from its global presence. In Europe, weak economic conditions led to subdued demand, especially in construction, truck and agricultural machinery. Demand improved here only towards the end of the reporting period. Thanks to the swift implementation of cost-cutting measures, the European locations performed satisfactorily overall. North America showed good demand for voestalpine’s special sections and tubes. Following the conclusion of long-term contracts with well-known truck manufacturers, production capacity for high-quality truck side members is being expanded in Jeffersonville, Indiana, USA. In Brazil, South America, demand from the photovoltaic industry did not match the excellent level of previous years but was largely offset by growth in other segments such as the bus industry. In China, the financial year was generally pleasing for Tubes & Sections. In addition to good demand for precision tube components from Chinese car manufacturers, the custom rollforming segment also performed well.
Demand for products from the Precision Strip business segment was relatively subdued throughout the reporting period. Saw band steel showed no recovery in North America or Europe. In contrast, demand for cutting rules in North America’s packaging market and for shock absorber steels in China remained robust.
The Warehouse & Rack Solutions business segment maintained strong momentum throughout the 2024/25 business year. Project activity for automated warehouses in North America and Europe proved to be very satisfactory thanks to voestalpine’s innovative customer solutions. The most recent acquisition, Torri S.R.L., Italy, is continuing to develop according to plan. In North America, the next phase of growth includes the expansion of production and sales capacity in Louisville, Kentucky, USA.