Not a day goes by without drastic staff cuts being announced somewhere, but the current economic situation almost seems to be mirrored at Voestalpine. Despite declining turnover and lower profits, the group, which operates from Linz (Upper Austria), appears to be robust.
Voestalpine is heading into the future at full speed: Construction work has started in Linz and Leoben-Donawitz for the new electric arc furnaces, each of which will replace a blast furnace from 2027. Since the beginning of this year, only the new stainless steel factory in Kapfenberg has been in operation; the old production was shut down at the end of 2023 as planned.
While future projects are in full swing, day-to-day business remains a challenge: demand from the consumer goods industry is as weak as that from the construction and mechanical engineering industries. The demand for steel in the tool sector is also decreasing, says Voestalpine.
“The expected economic downturn was clearly noticeable in the first nine months of the current fiscal year,” says Herbert Eibensteiner, CEO of Voestalpine, “but overall we are firmly positioned due to our broad focus on different market segments and economic regions.” Business continues to run smoothly in the railway infrastructure, in the energy sector and in warehouse technology.
Profit after tax amounts to 431 million euros
Yet the challenges left their mark on the balance sheet: after three quarters of the 2023/24 financial year, turnover amounted to 12.4 billion euros – a decrease of 8.8 percent. The profit after tax amounts to 431 million euros. Last year the profit amounted to 864 million euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
