Crises demand

Voestalpine makes less profit than expected

Voestalpine has its headquarters in Linz (Upper Austria).

(Bild: Wenzel Markus)

Last year, Voestalpine achieved the second-highest revenue in the company's history at EUR 16.7 billion and had to accept a decline in earnings before interest, taxes, depreciation and amortization to EUR 1.7 billion. The current business year is going worse in terms of profit, as was announced on Monday afternoon.

The sale of Buderus Edelstahl in Germany is entering the home straight; at the same time, the Automotive Components division is being reorganized, which will probably not be possible without staff cuts; the fact that the market in Europe has also deteriorated significantly does not make the situation any easier - apart from the accounting scandal, in which figures in a company of the Metal Forming Division were embellished for years and which the company is considered to have dealt with, things are currently getting tough for Voestalpine.

300 million euros less than in 2023/24
On Monday afternoon, the Linz-based steel group then announced Expectations for the 2024/25 financial year will not be met. Earnings before interest, taxes, depreciation and amortization will probably come in at EUR 1.4 billion. After 2023/24, Voestalpine had reported EBITDA, as this key figure is called, at EUR 1.7 billion. A decrease of around EUR 300 million.

The measures Voestalpine is taking will improve its earnings potential for the future. The environment is described as economically changing and regulatory restrictive.

Unimpressed by this, steps are being taken towards greener steel production: an electric arc furnace will be built in Linz and Leoben-Donawitz by 2027 at a cost of EUR 1.5 billion each.