The domestic Steel company Voestalpine Feeling the weak economy and the auto crisis in Germany with full force. In the first three quarters of the current financial year 2024/25, the profit after taxes halved from 415 to EUR 207 million compared to the comparison period of the previous year, as the listed company announced on Wednesday. The results of the result for the overall year were revised downwards.
“We encounter the currently difficult economic environment in Europe with active management and a global growth strategy,” said CEO Herbert Eibensteiner. The Voestalpine is “financially solidly established”. The Voestalpine Group continues to drive its international strategy “Local for Local” in different corporate areas-this means the expansion of on-site production in the customer countries.
Significantly worse results
In the first nine months of the current financial year, the result before taxes fell by almost 55 percent to EUR 254 million compared to the same period last year. The result before interest and taxes (EBIT) decreased by around 44 percent to EUR 391 million. The operating result is influenced by negative one-off effects of around 170 million euros and contains, for example, a need for depreciation in connection with the end of January, which was completed at the end of January, the reorganization of the Automotive Components area in Germany and evaluation effects of the Voestalpine gas pond.
Before interest, taxes and depreciation remained a profit (EBITDA) of EUR 968 million after the first three quarters – that was almost a quarter less than a year ago.
Ebitda decline from 1.7 to 1.3 billion euros expected in the year as a whole year
A look at the coming months promises little improvement. That is why the group drove its Ebitda expectations for the entire fiscal year from 1.4 billion to 1.3 billion euros again. The EBIT should be “in about 500 million euros”. In the previous financial year 2023/24, the operational result (EBITDA) had already broken out from a good EUR 2.5 to 1.7 billion euros with sales of 16.7 billion euros and the operating profit (EBIT) of around 1.6 billion. melted together to 569 million euros.
At the beginning, the ongoing fiscal year showed a solid development, but in the further course the economic environment has cooled down, the Voest reported. Europe had shown hardly any significant growth impulses over the entire reporting period. In addition, the automotive industry, which is important for the Voestalpine, in the third business district has weakened significantly, and market dynamics in Europe have further reduced. Furthermore, the consumer goods industry and the construction and mechanical engineering industry also remained at a low level.
Railway infrastructure, aviation and warehouse technology run well
In contrast, the area of rail infrastructure developed particularly well in the first nine months. The area of aviation was also able to continue the existing upward trend, the group said. In the warehouse system department, the demand for automated high -bay bearings has required. The good demand situation for railway infrastructure, warehouse technology and aviation should continue in all economic regions worldwide in the coming months.
For the areas of construction, mechanical engineering, consumer goods and automobile, the Voestalpine expects no recovery for the last quarter of the current financial year. Expectations are divided into two for North America: The local North American locations of the Voestalpine Group should continue to benefit from the good economic dynamics, “whereas exports to the USA” are subject to steel products due to the announced tariffs, “according to the management.
According to its own information, the Voestalpine is represented in more than 50 countries with around 500 group companies. Since the beginning of the current financial year, the staff status has been reduced by 1.8 percent from a total of 51,589 to 50,670 employees. Compared to December 31, 2023 (50,712 people), the number of employees remained stable. The Voestalpine Group has been listing on the Vienna Stock Exchange since 1995.