Austrian steel and technology group Voestalpine has seen its profits slump, hit by weaker demand in Europe, falling prices and write-downs.
Net profit after taxes fell by 82% to €207 million ($225 million) in the business year 2023/2024, the company said on Wednesday. The market in Germany in particular has not developed especially well, said Voestalpine boss Herbert Eibensteiner.
The planned sale of the German subsidiary Buderus Edelstahl meant a write-off of €360 million, he said. Overall, however, the company is very solid and expects earnings before interest, taxes, depreciation and amortization (EBITDA) for the coming business year to be at the current level of around €1.7 billion, Eibensteiner said.
The group, which specializes in high-quality steel and employs around 51,000 people worldwide, is an important supplier to the premium brands of the German automotive industry.
Demand in this area was reasonably stable, it said. Business in construction, mechanical engineering and household appliances was much more difficult.
In contrast, trade in aviation and railway infrastructure products developed very positively, according to the company.
Overall, Voestalpine achieved a turnover of €16.7 billion, the second-highest figure after the previous year's record figure of €18.2 billion.
Thanks to the billions invested in new steel production, CO2 emissions could be reduced by 30% from 2027, the company said.
