By Pierre Bertrand
Shares in Voestalpine AG rose in early trading Wednesday after the Austrian steel-products manufacturer said fiscal 2022 was its most successful since its founding.
As of 0951 GMT, shares traded up 3.3% to EUR29.16.
The company reported EUR1.3 billion ($1.4 billion) in after-tax profit for the year ended March 31, adding that it expects an operating profit of between EUR1.8 billion and EUR2 billion for fiscal 2023, which Jefferies analysts say is just slightly below consensus expectations.
Voestalpine also proposed a dividend of EUR1.20 for fiscal 2022, more than doubling the EUR0.50 dividend proposed for the previous period.
The company said it expects good earnings performance in the first quarter of fiscal 2023, though uncertainties due to general economic development might cloud the forecast for the second half of the year.
The company’s performance was buttressed by better-than-expected steel prices, and its cash flow was also a positive element in Wednesday’s results, Citi analysts say in a note.
However, while Voestalpine has a good level of orders through the summer in the Northern hemisphere, its guidance reflects uncertainty around strength in demand after that period, Jefferies analysts Alan Spence and Christopher LaFemina said in a note.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
June 08, 2022 06:07 ET (10:07 GMT)
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Read More: Voestalpine Shares Rise Following Record-Setting Fiscal Year 2022