Last year, Voestalpine achieved the second highest turnover in the company’s history at 16.7 billion euros and had to accept a decline in earnings before interest, taxes, depreciation and amortization to 1.7 billion euros. Profits are doing worse in the current financial year, it was announced on Monday afternoon.
Sales of Buderus Edelstahl in Germany are getting underway; At the same time, the restructuring of the auto parts division is in full swing, which is unlikely to be possible without staff reductions; The fact that the market in Europe has also deteriorated significantly does not make the situation any easier – for Voestalpine it is currently over the accounting scandal in which figures of a company in the Metal Forming Division were embellished over the years and is being considered for the company to have been overhauled and is currently extremely thick.
300 million euros less than 2023/24
On Monday afternoon, the steel group from Linz announced: The expectations for the 2024/25 financial year will not come true. Earnings before interest, taxes, depreciation and amortization will likely amount to 1.4 billion euros. After the year 2023/24, Voestalpine reported an EBITDA, as this key figure is called, at 1.7 billion euros. A decrease of about 300 million euros.
Voestalpine’s measures are said to improve future earnings potential. The environment is described as economically rapidly changing and restrictive in terms of regulations.
Don’t let this deter you, steps are being taken towards greener steel production: an electric arc furnace will be built in Linz and Leoben-Donawitz by 2027, costing 1.5 billion 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.
