Annual Report 2005/06 - voestalpine
Annual Report 2005/06 - voestalpine
Annual Report 2005/06 - voestalpine
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Management <strong>Report</strong><br />
neT FinanCial DeBT – eqUiTy – gearing raTio<br />
624.5 830.6 635.1 683.5 376.9<br />
1,563.7 1,785.9 1,853.2 2,124.7 2,547.3<br />
39.9 46.5 34.3 32.2 14.8<br />
2001/02 2002/03 2003/04 2004/05 <strong>2005</strong>/<strong>06</strong><br />
— Net financial debt — Equity — Gearing (in %)<br />
Business year <strong>2005</strong>/<strong>06</strong> In millions of euros<br />
32 <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>/<strong>06</strong><br />
thus tripling the figure posted the year before<br />
last. This figure means that the<br />
<strong>voestalpine</strong> Group has significantly improved<br />
its operating result for the fourth<br />
consecutive time. The Group’s EBIT margin<br />
rose during the <strong>2005</strong>/<strong>06</strong> business year from<br />
9.6% to 11.3%.<br />
The raw materials costs, which rose by about<br />
EUR 200 million last year as compared to<br />
the previous year, had an adverse effect on<br />
the result.<br />
significant increase in the operating<br />
result in all divisions of the group<br />
As was the case with regard to sales figures,<br />
the operating result also rose in all four<br />
divisions. The leader was the Division Railway<br />
Systems which more than doubled its<br />
EBIT. The Division Automotive increased its<br />
operating result by a third as compared to<br />
the previous year, and in the Division Steel,<br />
EBIT was about 21% higher than the previous<br />
year ’s figure. With an absolute increase<br />
of just over 7%, the Division Profilform<br />
continued to improve its operating<br />
result, too.<br />
The profitability of the Division Railway<br />
Systems almost doubled as compared to the<br />
previous business year from 7.7% to 13.6%;<br />
the EBIT margins of the Divisions Steel and<br />
Profilform – with 11.6% and 11.2% respectively<br />
– are about on the same level as the<br />
Group overall. With 4.6%, the Division<br />
Automotive not only achieved its highest<br />
EBIT margin of the last few years by far, but,<br />
compared to its competitors in the European<br />
automotive supply industry, it is a<br />
front-runner.<br />
The Group’s sales and operating results,<br />
which are significantly higher as compared<br />
to last year, are not only the result of the<br />
gratifying development in the steel sector,<br />
but also of the excellent performance in the<br />
switches, wire, and seamless tube segments<br />
(Division Railway Systems), in the laserwelded<br />
blanks, security technology, and<br />
precision parts segments (Division Auto
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