Steel industry: Voestalpine lowers profit forecast for 2024/25: Buderus Edelstahl devaluation and weak car business weighed on

by time news

The company is in the process of restructuring its automotive components business. At the same time, Germany’s Buderus Edelstahl, which has long been affected by huge savings, is being devalued again.

In March 2024, the voestalpine board of directors decided to convert the strategic process of repositioning Buderus Edelstahl into a sales process. “Due to the quarterly assessment required, the current status of negotiations with interested parties will result in one-off negative consequences of approximately EUR 50 million for the second financial quarter of 2024/25,” management explained.

>>> Voestalpine files criminal complaint after balance sheets falsified by German subsidiary

For the second quarter of 2024/25, the management board expects an EBITDA of around 300 million euros and an EBIT of around 110 million euros. For the full first half of 2024/25, EBITDA of around 720 million euros and EBIT of around 340 million euros are forecast – and thus a result that is currently below market expectations.

The final figures for the first half of 2024/25 will be published on 13 November 2024.

With the proposed sale of Buderus Edelstahl, voestalpine’s High Performance Metals Division is focusing its product portfolio on the highly specialized segment of high performance materials. This reduces the proportion of tool and stainless steel in the standard grade range.

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