Corporate News regarding 2nd Quarter BY 2017/18
voestalpine reports best half year’s results since „Lehman“
The global macroeconomic environment was characterized by improving dynamics for the most part in the first six months of the business year 2017/18. Apart from private consumption, which was the main pillar for economic growth in most regions in the past, investment activities increasingly contributed to the positive development in the course of the first half 2017/18.
This development applies in particular for Europe and increasingly also for North America, whereas China utilizes the continuous stable development for reforms of its environmental- and climate change policies without risking the underlying positive economic trend. After several years of recession, first signs of an economic turnaround are visible in Brazil.
For voestalpine Group this development meant on-going strong sales in the automotive as well as the consumer goods industry. In addition, dynamics in industrial segments, like mechanical engineering-, oil- and gas-equipment-industry and portions of the building and construction industry improved. By contrast, the demand in the railway infrastructure segment stays subdued, with the only exemption of China. Power plant construction stays unchanged weak, not only in Europe, but also in several other regions in the world.
Against this backdrop, voestalpine Group was able to prolong the excellent development of the first business quarter 2017/18 and significantly increased sales and earnings in all categories in the first half of 2017/18 compared to the past business year.
Essential for this development were increased product prices and partly higher shipment volumes together with an improved product mix and permanent efficiency improvements in all business units of the group.
The Steel Division reported the by far strongest earnings boost, however all other Divisions were able to improve their results on an operational basis as well.
Against the backdrop of the positive global growth prospects that remain unchanged even at the start of the second half of the business year 2017/18, the substantially positive development in both revenue and earnings that is expected for the business year 2017/18 compared to the previous year seems to be unchanged secure.