On October 14, 2024, voestalpine announced that its financial results for the first half of the business year 2024/25 fell below market expectations, largely due to unexpected one-off effects and an economic downturn impacting Europe. The Management Board revealed that these challenges necessitated an adjustment in the company's earnings forecast for the full business year. Specifically, the anticipated negative one-offs related to the ongoing strategic repositioning of Buderus Edelstahl are projected to amount to approximately EUR 50 million for the second quarter.
The Management Board expects an EBITDA of around €300 million for the second quarter and approximately €720 million for the first half of the year, with EBIT figures of around €110 million and €340 million, respectively. These figures indicate a significant drop from previous expectations and underscore the difficulties the company is currently facing.
The final results for the first half of the business year are scheduled for release on November 13, 2024. However, early indications suggest a tough landscape, compounded by the economic downturn affecting numerous sectors across Europe. The Management Board has signaled that the anticipated one-off effects from the restructuring of the Automotive Components Business Unit in Germany will further influence earnings in the latter half of the year.
In response to these challenges, voestalpine is taking decisive action by moving forward with the sale of Buderus Edelstahl. This strategic decision aims to concentrate the High Performance Metals Division on high-tech special materials, thereby reducing its production focus on tool steel and engineering steel in the standard grade area. By streamlining its product portfolio, voestalpine aims to enhance its market positioning and adapt to changing industry demands.
Despite the immediate financial setbacks, voestalpine views these non-recurring burdens as necessary investments to strengthen its future earnings potential. The company recognizes the importance of adapting to a rapidly changing economic and regulatory environment. Voestalpine is committed to maintaining its leadership position in the steel industry while pursuing sustainable practices through its greentec steel program, which aligns with global climate goals.
As a globally leading steel and technology group, voestalpine operates approximately 500 companies across more than 50 countries. The firm has established a strong market presence in sectors such as automotive, aerospace, energy, and railway systems. With a reported revenue of €16.7 billion in the previous business year and around 51,600 employees worldwide, voestalpine remains a pivotal player in the global steel landscape.
