Corporate News regarding 1st Half 2018/19

The beginning of the first half of the business year 2018/19 was characterized by solid demand in almost all industries and economic regions relevant to voestalpine. By contrast, the end of this period was marked by effects of protectionist trade policies from a variety of states, for the first time recognizable in the real economy. At the same time, considerable distortions in the European automotive industry were triggered by a new exhaust emission test system (WLTP).

While the effects of the trade conflict have been felt, above all, by a reduction in economic momentum in China - of which consequences for voestalpine were manageable - the turbulences in the European automotive industry had, at least temporarily, a significant impact on all divisions of the group.

An additional negative factor in the second quarter was the earnings impact of the long-planned, comprehensive renewal of the largest blast furnace in the Steel Division due to significantly reduced production and shipment volumes as well as a 14-day shutdown of the HBI plant in Texas due to flooding.

The expectation at the beginning of the business year, that the impact on earnings from the blast furnace relining can be compensated by positive economic effects (such as an ongoing swift recovery in the oil and gas sector and the railway infrastructure sector) and additional contributions from new plants in the second half of the year can no longer be maintained, in particular in the light of the recently flattening economic growth momentum.

Accordingly, the outlook for the full financial year had to be adjusted. From a present-day perspective, an operating result (EBITDA) of just under EUR 1.8 billion and a profit from operations (EBIT) of just under EUR 1 billion is expected for the 2018/19 business year.

^{*Before deduction of non-controlling interests and interest on hybrid capital.}