voestalpine has announced its Q1 financial results ending June 30th 2009. Some of the highlights are:
1. Revenue fell by more than a third to EUR 2.1 billion
2. Profit from operations at EUR 24 million slightly negative
3. Break even EBIT targeted in 2nd quarter
4. Outlook for business year 2009-10 unchanged
The economic environment of the 2009-10 business year has been the most difficult one in decades. The economic circumstances during the first quarter have been extremely challenging resulting in a significant decline in sales revenue and operating result. Revenue is down by 36.3% from EUR 3,255 million to EUR 2,073.6 million due to dramatic decline in sales volume and price level. EBITDA decreased by 75.1% from EUR 542.6 million to EUR 134.9 million. Profit from operations was negative at EUR 24 million after EUR 357.7 million in the previous year, but the long term, consistent focus on sophisticated products that are less price sensitive, as well as rapid and comprehensive capacity adjustments and cost reductions keep operational losses to a reasonable level, particularly compared to the competition. Profit for the period fell from EUR 240.3 million to EUR 48.2.
Mr Wolfgang Eder CEO of voestalpine AG said that "Despite the fact that this was the most difficult quarter in decades for European industry, voestalpine AG just barely missed being able to report a positive operating result. Without the negative accounting effects of the purchase price allocation of just above EUR 30 million resulting from the purchase of the BÖHLER-UDDEHOLM Group the profit from operations would have been EUR 5.1 million."