At the start of the 2024/25 business year, the weak performance of the construction, mechanical engineering, and consumer goods industries was partly offset by very good demand from the railway infrastructure, aerospace, warehouse and rack solutions, and conventional energy sectors. The automotive industry also performed largely stable at a solid level.
The conventional energy sector already weakened noticeably over the course of the first quarter and the automotive industry also lost momentum significantly at the end of the second quarter following a series of profit warnings from renowned European OEMs. The economic mood in Europe changed over the course of the first half of 2024/25 after large corporations announced extensive plans to reduce their workforce.
As a result, the voestalpine Group had to withdraw its earnings forecast in an ad hoc announcement on October 14, 2024. Based on the results of the first half of 2024/25, the significantly deteriorated market developments in Europe, the non-recurring burdens on earnings totaling more than EUR 100 million from the sale of Buderus Edelstahl, and the reorganization of the Automotive Components business in Germany, the Management Board of voestalpine AG currently expects EBITDA for the business year 2024/25 to be in the region of EUR 1.4 billion.
This earnings outlook is based on the expectation of continued good global development in the Railway Infrastructure, Aerospace, and Warehouse Technology business segments. The assessment of the performance of voestalpine’s non-European sites in the other business segments also remains positive for the second half of 2024/25. The Management Board of voestalpine AG is meeting the challenges in Europe, particularly in Germany, with active management and, where not otherwise possible, by reducing the Group’s presence in this region.
From the very beginning, the voestalpine Group took into account the climate protection-related transformation requirements of its European blast furnace-based steel sites with a balanced strategy between expected market development, technically feasible solutions, and economic viability. The implementation of the greentec steel projects in the Steel Division and the Metal Engineering Division is proceeding according to plan, both in terms of time and money.