With an EBITDA of EUR 860.1 million and an EBIT of EUR 479.5 million, the preliminary figures of the voestalpine Group for the first half of the business year 2018/19 are below the expectations of the market. Against this backdrop and due to the fact that the assumption made in the last outlook that the negative earnings effects of the blast furnace repairs (amounting to around EUR 150 million) can largely be offset is unlikely to occur, the Management Board of voestalpine AG today adjusted the outlook for the business year 2018/19 and from today’s point of view expects an EBIT of just under EUR 1 billion.
According to Voestalpine the weakening performance is based on a number of different factours, such a negative effects and distortions of international trade flows from the ever-increasing number of protectionist trade policies used by a large number of countries and distortions in the automotive sector which, inter alia, in Europe have been triggered by a new exhaust emission test procedure (WLTP) as of September 1, 2018, and related uncertainties. The Austrian company also identifies increased costs from the ramp-up of automotive activities in North America an increasing logistical challenges with inbound and outbound freights triggered by low water levels on European waterways.
source: Voestalpine. photo: fotoalia