Latest news with #HerbertEibensteiner
Yahoo
05-06-2025
- Business
- Yahoo
voestalpine AG (VLPNF) Full Year 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: Decreased from EUR16.7 billion to EUR15.7 billion, a reduction of EUR1 billion. EBITDA: Declined from EUR1.7 billion to EUR1.3 billion. EBIT: Reported at EUR455 million, with adjusted EBIT at EUR770 million after accounting for non-recurring items. Net Debt: Stable at EUR1,650 million. Equity Ratio: 47%. Free Cash Flow: EUR309 million, down from EUR394 million the previous year. Earnings Per Share: Increased to EUR0.90 from EUR0.60. Gearing Ratio: Stable at 22%. Investment in Greentec Steel Project: EUR500 million of EUR1.5 billion already invested. Adjusted EBITDA: EUR1.5 billion after adjustments for non-recurring items. Outlook for EBITDA: Forecasted in the range of EUR1.4 billion to EUR1.55 billion for fiscal year '25-'26. Warning! GuruFocus has detected 4 Warning Sign with DLTR. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. voestalpine AG (VLPNF) achieved solid results despite a challenging environment, particularly due to strong performance in railway systems and aviation sectors. The company maintained a stable, low-debt situation, focusing on free cash flow generation. The greentec steel project is progressing well, with one-third of the EUR1.5 billion investment already completed. The Steel Division showed strong performance, benefiting from stable demand in the automotive and energy sectors. The company is actively pursuing growth projects, including long-term contracts with truck manufacturers in North America and expansion in high-bay warehouse production. There was ailing demand in Automotive Components, mechanical engineering, and construction sectors, prompting reorganization projects. The European market, particularly Germany, was weak, impacting overall performance. The High Performance Metals Division faced low demand and underutilization of steel plants, especially in Europe and North America. The Metal Forming Division's Automotive Components business is still recovering from low domestic production levels in Europe. The company is facing uncertainties due to potential US tariffs, which could impact demand and production. Q: Could you share what happened with your sales to the US with the 25% tariffs in place? Have you been able to share the tariff cost with customers, or are you bearing the full cost? And regarding the 50% tariff, would the impact be greater because you could lose orders and production? A: Herbert Eibensteiner, CEO: Yes, the 25% tariffs led to a rise in steel prices, allowing us to pass some costs to customers through longer-term contracts. However, the 50% tariffs could lead to reduced orders from the US, as some products cannot be sourced locally, potentially impacting our production and demand. Q: Regarding European trade policy, you mentioned the potential extension of the free allocation path to 2034. Is this part of the Steel Action Plan, or is it something the European Commission is considering? A: Herbert Eibensteiner, CEO: We are lobbying for this extension as we invest in CO2 reduction. While some politicians are considering it, we are not sure of success. Other issues like safeguard measures and CBAM are also being discussed, but we may not get everything we want. Q: What is your base case scenario for the steel price cycle between now and the end of the year? A: Hubert Zajicek, Head of the Steel Division: We expect stable steel prices with no significant movement. Yearly contracts reflect current levels, and while there was an upturn earlier this year, prices have stabilized. We anticipate stable prices through the fiscal year with slight fluctuations. Q: Could you share the profit contribution from the railways business within the Metal Engineering Division? A: Gerald Mayer, CFO: The railway systems segment accounts for over 50% of the division's revenue and outperforms in terms of profitability and margin compared to the rest of the division. Q: On the CapEx side, how much of the EUR1.15 billion is for decarbonization, and where have you cut versus earlier guidance? A: Gerald Mayer, CFO: Approximately EUR350 million of the EUR1.15 billion CapEx is for decarbonization this year. We aim not to exceed this amount in future periods, with 25-30% of the total EUR1.5 billion decarbonization budget already spent. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
voestalpine AG (VLPNF) Full Year 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: Decreased from EUR16.7 billion to EUR15.7 billion, a reduction of EUR1 billion. EBITDA: Declined from EUR1.7 billion to EUR1.3 billion. EBIT: Reported at EUR455 million, with adjusted EBIT at EUR770 million after accounting for non-recurring items. Net Debt: Stable at EUR1,650 million. Equity Ratio: 47%. Free Cash Flow: EUR309 million, down from EUR394 million the previous year. Earnings Per Share: Increased to EUR0.90 from EUR0.60. Gearing Ratio: Stable at 22%. Investment in Greentec Steel Project: EUR500 million of EUR1.5 billion already invested. Adjusted EBITDA: EUR1.5 billion after adjustments for non-recurring items. Outlook for EBITDA: Forecasted in the range of EUR1.4 billion to EUR1.55 billion for fiscal year '25-'26. Warning! GuruFocus has detected 4 Warning Sign with DLTR. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. voestalpine AG (VLPNF) achieved solid results despite a challenging environment, particularly due to strong performance in railway systems and aviation sectors. The company maintained a stable, low-debt situation, focusing on free cash flow generation. The greentec steel project is progressing well, with one-third of the EUR1.5 billion investment already completed. The Steel Division showed strong performance, benefiting from stable demand in the automotive and energy sectors. The company is actively pursuing growth projects, including long-term contracts with truck manufacturers in North America and expansion in high-bay warehouse production. There was ailing demand in Automotive Components, mechanical engineering, and construction sectors, prompting reorganization projects. The European market, particularly Germany, was weak, impacting overall performance. The High Performance Metals Division faced low demand and underutilization of steel plants, especially in Europe and North America. The Metal Forming Division's Automotive Components business is still recovering from low domestic production levels in Europe. The company is facing uncertainties due to potential US tariffs, which could impact demand and production. Q: Could you share what happened with your sales to the US with the 25% tariffs in place? Have you been able to share the tariff cost with customers, or are you bearing the full cost? And regarding the 50% tariff, would the impact be greater because you could lose orders and production? A: Herbert Eibensteiner, CEO: Yes, the 25% tariffs led to a rise in steel prices, allowing us to pass some costs to customers through longer-term contracts. However, the 50% tariffs could lead to reduced orders from the US, as some products cannot be sourced locally, potentially impacting our production and demand. Q: Regarding European trade policy, you mentioned the potential extension of the free allocation path to 2034. Is this part of the Steel Action Plan, or is it something the European Commission is considering? A: Herbert Eibensteiner, CEO: We are lobbying for this extension as we invest in CO2 reduction. While some politicians are considering it, we are not sure of success. Other issues like safeguard measures and CBAM are also being discussed, but we may not get everything we want. Q: What is your base case scenario for the steel price cycle between now and the end of the year? A: Hubert Zajicek, Head of the Steel Division: We expect stable steel prices with no significant movement. Yearly contracts reflect current levels, and while there was an upturn earlier this year, prices have stabilized. We anticipate stable prices through the fiscal year with slight fluctuations. Q: Could you share the profit contribution from the railways business within the Metal Engineering Division? A: Gerald Mayer, CFO: The railway systems segment accounts for over 50% of the division's revenue and outperforms in terms of profitability and margin compared to the rest of the division. Q: On the CapEx side, how much of the EUR1.15 billion is for decarbonization, and where have you cut versus earlier guidance? A: Gerald Mayer, CFO: Approximately EUR350 million of the EUR1.15 billion CapEx is for decarbonization this year. We aim not to exceed this amount in future periods, with 25-30% of the total EUR1.5 billion decarbonization budget already spent. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Revolutionary new plant aims to solve harmful issue with traditional steelmaking: 'A compelling alternative'
The mining company Rio Tinto is supplying Austrian steelmaker Voestalpine with 70% of the iron needed for a new steel-making plant that doesn't create harmful emissions. According to Reuters, Primetals Technologies will supply the new steel-making technology. Instead of burning coal, the Austrian plant will use hydrogen. This has the potential to cut harmful emissions from steel manufacturing. The new plant is receiving funding from the Austrian government and European Union programs, and it is also supported by the Mitsubishi Corporation. It will be built at Voestalpine's Linz site in Austria, and the operations are planned to begin mid-2027. According to ESG News, the iron provided by Rio Tinto will come from its operations in Pilbara in Australia and Simandou in the Republic of Guinea, as well as other mining locations. The iron will be used to make steel via a hydrogen-based fine-ore reduction process and smelter. These technologies don't require coal. Traditional steel-making uses oxygen furnaces or electric arc furnaces. These processes either use coal or limit what kinds of raw materials can be used. The HYFOR process will cut energy consumption and cost, producing steel efficiently and affordably. This can make construction projects cheaper, resulting in lower property prices. The steel industry also has a massive carbon footprint. According to Sustainable Ships, 1.4 tons of carbon emissions are released into the atmosphere per ton of steel produced. This revolutionary process could eliminate the most dangerous emissions from the industry, making steel more sustainable. The prototype plant will help make a cleaner future and a healthier planet for everyone. Thomas Apffel, the general manager of steel decarbonisation at Rio Tinto, said this "solution presents a compelling alternative to shaft furnace technology," per ESG News. Herbert Eibensteiner, the CEO of Voestalpine AG, stated, "Together with Primetals Technologies and Rio Tinto, we are taking an entirely new and promising approach to research into hydrogen-based pig iron production." Do you think the U.S. should tax goods from China? Definitely No way Only certain goods I'm not sure Click your choice to see results and speak your mind. Alexander Fleischanderl, the chief technical officer and head of green steel at Primetals Technologies, also expressed excitement over the new technology, saying, "This project represents a significant advancement in future-proof ironmaking." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
