09.08.2017

Zugemailt von / gefunden bei: Baader Helvea (BSN-Hinweis: Lauftext im Original des Aussenders, Titel (immer) und Bebilderung (oft) durch boerse-social.com aus dem Fotoarchiv von photaq.com)

We stick to our Buy rating. The EBIT consensus increased a bit during the last weeks from approx. EUR 980mn above EUR 990mn. But voestalpine could be able to reach the EUR 1bn this year. They gave no concrete guidance after 1Q and pointed to the fact that there are still some uncertainties when it comes to prices development or the USD. However, this quarter confirms that the management has implemented the right strategy and that the high investments in the past start to deliver their required share of profits.  

    The FCF guidance for this year is EUR 200-300mn, including the working capital build-up of up to EUR 300mn for the relining of the big blast furnace in summer 2018. It will affect approximately 1 million tons. This will reverse with the sale of the products during 2018, meaning everything else equal, and FCF can reach EUR 800mn in 2018/19. Therefore, some discussions went around the question how to use the funds. M&A will play a minor role because of high multiples. But extra dividend or a share buyback might be an option.

    Low operating cash flow. Voestalpine already started to build up working capital for the relining of the blast furnace. Together with the increase in overall production and higher average price the operating cash flow declined from EUR 215.6mn to EUR 20.7mn. FCF was negative with EUR ~180mn. But the guidance for the full year is a positive FCF above EUR 200mn. 

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voestalpine

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