"Solid development"

Voestalpine

Voestalpine has its headquarters in Linz.

(Bild: Wenzel Markus)

In the annual report, the Voestalpine Management Board speaks of a "solid development" with regard to the figures for 2023/24 - but this cannot be said of the profit after tax in particular. Profit fell from EUR 1.177 billion in 2022/23 to EUR 207.1 million. A decline of 970 million euros.

"We once again demonstrated our strength and resilience in the past financial year. In an extremely 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 Voestalpine CEO Herbert Eibensteiner.

Revenue at 16.684 billion euros
On Wednesday, the technology and steel group presented its figures for 2023/24, which show just how much the company, which operates out of Upper Austria, is being challenged. Turnover fell from 18.225 billion euros (2022/23) to 16.684 billion euros (2023/24). The operating result also declined, falling to 1.666 billion euros. The change in earnings after taxes was striking: Whereas EUR 1.177 billion had been reported here for 2022/23, Voestalpine ended up with EUR 207 million in this area in 2023/24. This decline is explained by the economic slowdown and one-off effects.

In March, the company announced that it would be divesting the German stainless steel company Buderus. 1200 employees are affected by the decision. Voestalpine wrote off EUR 410 million in this context.

Even before that, Eibensteiner had let it be known that the belt would be tightened once again in terms of expenditure. The CEO commented in February: "We have an ongoing program in which we are trying to save around EUR 300 million in costs at Voestalpine every year. And we have added to that."

Construction work for green steel production in full swing
Construction work is in full swing in Linz and Leoben-Donawitz to replace one blast furnace each with an electric arc furnace from 2027. EUR 1.5 billion is being invested in these locations alone.