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The scandal of the handling of exhaust gases in the automotive industry, which was piloted for the first time by VW, also left a mark on the balance sheet of Upper Austria's steel group, Voestalpine. Builders, important customers of the Linzer, come to modernize their cars because of the now stricter regulations on exhaust gases and to avoid a new production in decline.
The systematic replacement of a blast furnace in Linz, which lasted during the summer and weighed about 150 to 160 million euros on the result, was also badociated with additional costs. "That was the main reason," said CEO Wolfgang Eder (pictured), listing the trigger for the rather heavy fall in profits recorded in the first half.
Profit after tax (before deducting minority interests and hybrid interests) decreased by 18.7% to 316 million euros, while earnings per share decreased by 19.1%, from 2.09 to 1 EUR 69 euro. The operating result was also lower than during the 2017/18 record year – earnings before interest and taxes decreased by 17.9% to EUR 479.5 million. The turnover increased by 5.9% to 6.67 billion euros.
For the moment, no improvement is in sight. "We have to correct profit forecasts for the whole year," admitted Eder. After all, "the slowdown in the European automotive sector will continue in the second half – after three, four very strong years in the automotive industry," says the CEO. Another reason is "the disruption of international trade flows, which will increase in the second half – we should not deceive ourselves".
In addition to the international trade dispute initiated by US President Donald Trump, voestalpine faces additional challenges in North America: the rise of new factories in the auto sector is badociated with Extra costs, therefore too high, to young people The Texas HBI plant was shut down for two weeks in September and October, as a result of floods and fires due to a faulty pipeline, such as this is the case today.
Management therefore expects operating profit (EBITDA) "of just under 1.8 billion euros" or EBIT of "just under 1 billion euros". d & # 39; euros. " "We are probably losing about 200 million euros compared to the previous year," Eder said.
Previously, the profit was the same as the previous year, a profit before interest, taxes, depreciation and amortization (EBITDA) of 1.95 billion euros and a profit before interest and taxes (EBIT) of 1 , 18 billion euros. For the 2017/18 financial year, voestalpine, however, increased its EBIT by 43%, crossing the billion-dollar mark for the first time, and by almost 27% to record levels.
"Since September, the market conditions and the commercial policy framework have changed, but we badume that there will be no questionable scenarios," said the boss of voestalpine. It also expects a "doubling or tripling of CO2 costs". Up to now, the group's expenses have amounted to 20 to 25 million euros per year. Given the separation of the electricity price zone between Germany and Austria, electricity prices are also rising.
"We have two to, in some areas, three years of excellent economic conditions," Eder said, citing "no particular drama". "The ambition that we had destroyed the economy."
In the first half, voestalpine employed 51,931 people worldwide (over 2.6%) in about 500 sites. The group is building a new stainless steel plant in Styria Mürztal in Kapfenberg, which will invest between 330 and 350 million euros.
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