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The voestalpine steel company in Linz disappoints its figures. With operating profit (EBIT) of 479.5 million euros, preliminary figures for the first half of fiscal 2018/19 are below market expectations. The board of directors of the traditional listed group now expects an EBIT of just under one million euros for the 2018/20 financial year.
Previously, the outlook was at the level of the previous year. In 2017/18, a record result of 1.18 billion euros was achieved, against 823 million euros for the previous financial year. "The decline in earnings and the factors described also have a corresponding effect on the evolution of cash flow," voestalpine said in a press release issued on Wednesday.
Voest's shares fell on the Vienna Stock Exchange. They have temporarily fallen by more than seven percent. At the same time, they fell to 30.88 euros, the same level as at the beginning of November 2016.
The reasons given for reversing the initial forecasts include: protectionist trade measures, distortions in the automobile sector due to the scandal of exhaust gases, increased costs resulting from the ramp-up of automotive activities in North America, unforeseen closures of the HBI plant in Texas and low water levels on the Danube,
The Texas brand closes the factory
As it became known, there was a fire at the voestalpine factory in Texas last week. Since then, the whole factory is still in business. The fire itself broke out after a gas leak and was extinguished after a minute, according to voestalpine. The people were not injured, the cause is still under investigation.
The extent of damage can not be quantified according to the steel company. Tomorrow or Friday, the steelworks will be restarted. Voestalpine employs more than 200 people in the southern United States.
(APA)
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