Feb 11 (Reuters) - Voestalpine missed nine-month core profit expectations on Wednesday, weighed down by continuing industrial downturn in Europe and persistent weakness in the automotive sector. It
Voestalpine's Profit Falls Short of Expectations Amid European Downturn
Voestalpine's Financial Performance and Outlook
Feb 11 (Reuters) - Voestalpine missed nine-month core profit expectations on Wednesday, weighed down by continuing industrial downturn in Europe and persistent weakness in the automotive sector.
It reported earnings before interest, taxes, depreciation and amortization (EBITDA) of 1 billion euros ($1.2 billion) for the nine months through December, missing a Vara consensus estimate by about 50 million euros. In the same period in 2024, the figure stood at 968 million euros.
Voestalpine's results remain under pressure from the company's exposure to the German industrial sector and the global auto industry, where customer destocking and production cuts have hit demand.
Impact of Industrial Downturn
Strength in the company's niche aerospace and railway businesses, as well as in well-performing regions like India, was not enough to completely counteract the broader cyclical troubles.
Strength in Niche Markets
Voestalpine said its flagship project aimed at cutting emissions from steel production through new technologies was on track. In the first phase, it is investing around 1.5 billion euros to replace coal-based blast furnaces with electric arc furnaces at its Austrian sites in Linz and Donawitz.
Future Emission Reduction Projects
Investors are keen to see whether Voestalpine's diversification strategy can protect earnings through its non-cyclical green and high-tech divisions.
Voestalpine confirmed its full-year outlook.
($1 = 0.8389 euros)
(Reporting by Maria Rugamer and Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak)
