After three quarters

voest

voestalpine has initiated restructuring measures in the Automotive Components division in Germany.

(Bild: voestalpine)

The increasingly difficult business environment, particularly in Europe, has not left voestalpine unscathed. The steel and technology group based in Linz (Upper Austria) recorded only a slight decline in revenue after three quarters in the business year 2024/25. However, profit after tax halved, coming in at 207 million euros.

The competition and employment protection clause was applied to tube production in Krieglach, at Böhler Special Steel and Böhler Aerospace in Kapfenberg and at the foundry in Traisen; vacation and leisure time credits were reduced; temporary workers also had to leave; the decision was also made to close the Automotive Components plant in Birkenfeld/Germany, which will result in the loss of 220 jobs - the wind had already become rougher at voestalpine in recent weeks.

Difficult economic environment in Europe
Even the steel and technology group cannot escape the current developments. "We are countering the current difficult economic environment in Europe with active management and a global growth strategy," emphasized CEO Herbert Eibensteiner, who presented the figures for the first three quarters of the business year 2024/25 on Wednesday morning.

And these showed a slight decline in revenue for voestalpine compared to the previous year, from EUR 12.4 billion in 2023/24 to EUR 11.7 billion. Profit after tax fell sharply, halving compared to the previous year: after three quarters of 2024/25, it amounted to EUR 207 million, compared to EUR 415 million in 2023/24.

However, the decline came as no surprise: the company had already reported a lower turnover of eight billion euros for the first half of 2024/25 than in the previous year. Earnings after taxes had shrunk to 183 million euros.

"We are in a solid financial position"
"Our Group strategy is robust and we are in a solid financial position. Especially in these challenging times, this is a stability factor and the basis for our investments in the future," says Eibensteiner. What is going well? The rail infrastructure and aviation sectors in particular, and demand for storage systems remains high. In contrast, demand from the energy industry cooled down over the course of the business year, as voestalpine reports.

More than 50,600 employees worldwide
Not a good sign: According to the steel group, the European automotive industry continued to lose market momentum. The voestalpine Management Board has already initiated a comprehensive reorganization program for the European and especially the German sites of the Automotive Components division. This includes, for example, the closure of the plant in Birkenfeld. As of December 31, 2024, voestalpine employed 50,670 people worldwide, compared to 51,589 at the end of March 2024.