Corporate News regarding 3rd Quarter 2018/19

While the first months of the business year 2018/19 were still marked by solid demand in almost all market segments and economic regions of relevance to voestalpine, noticeable effects of the US-led global trade conflict began to become visible after the summer.

At the same time, major distortions in the European automotive industry emerged, triggered by a new exhaust emission test procedure (WLTP). From a regional point of view, the Chinese market was generally weaker over the course of the year. The earnings development was additionally burdened by internal negative special effects.

Special effects in Q3 2018/19
While the first half of the business year 2018/19 was influenced mainly by the relining of the largest blast furnace of the Group, the third quarter was impacted by negative earnings effects from the ramp-up of automotive activities at voestalpine Automotive Components Cartersville, USA, and related one-off effects from the formation of provisions.

In addition the creation of a provision was necessary for possible adverse effects on the net assets, financial position and results of operations of the voestalpine Group in connection with a pending investigation by the German Federal Cartel Office against steel producers on suspicion of anti-competitive practices in the past in the market for heavy plates.

Outlook
Based on the assumption of a moderate cyclical economic trend over the next few months and no dramatic distortions due to political developments (global trade policy, BREXIT and the like), the voestalpine Group's operating result (EBITDA) for 2018/19 can be expected in the range of EUR 1,550 million and a profit from operations (EBIT) in the range of EUR 750 million, according to the development for 2018/19 already indicated in the ad hoc announcement of January 16, 2019. Revenues for the business year 2018/19, ending on March 31, 2019, should exceed those of the previous year and thus reach a new record high.

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