In the annual report, Voestalpine’s board of directors speaks of a “solid development” with a view to the 2023/24 figures – but that cannot be said, especially when it comes to profit after tax. Profit fell from 1.177 billion euros in 2022/23 to 207.1 million euros. A decrease of 970 million euros.
“We have once again demonstrated strength and resilience in the past financial year. In a particularly turbulent environment, we achieved a good operating result, met market expectations and further consolidated and expanded our strategic position with important projects in international markets,” emphasizes Herbert Eibensteiner, CEO of Voestalpine.
Turnover of 16.684 billion euros
On Wednesday, the technology and steel group presented its figures for 2023/24 and these show how much the company operating from Upper Austria is challenged. Turnover fell from 18.225 billion euros (2022/23) to 16.684 billion euros (2023/24). The operating result also fell and amounted to 1.666 billion euros. The change in profit after tax is striking: while 1.177 billion euros was reported here for 2022/2023, Voestalpine reached 207 million euros in this area in 2023/24. A decline explained by the economic slowdown and one-off effects.
The company announced in March that it would separate from the German stainless steel company Buderus. 1,200 employees are affected by the decision. In this context, Voestalpine has written off 410 million euros.
Eibensteiner had already announced in advance that the belt was being tightened again when it came to expenditure. The CEO said in February: “We have an ongoing program in which we try to save around 300 million euros in costs every year at Voestalpine. And we have gone a step further.”
Construction work for the production of green steel is in full swing
Construction work is in full swing in Linz and Leoben-Donawitz to build a blast furnace using an electric arc furnace from 2027. 1.5 billion euros will be invested in these locations alone.
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.
