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Voestalpine plans to double operating profit 2010/11
Thursday 18 November 2010, 15:52 clock print this article [-] Text []
1 / 1VollbildWien (Reuters) – The economic recovery will help the Austrian steel producer Voestalpine from the crisis.

In the year 2010/11, the company is aiming to double operating profit to 700 million euros. The transactions with the car industry, mechanical engineers and the consumer goods industry were already in the first half, well. By the end of September increased the Voestalpine sales by a quarter to 5.2 billion euros. 414 million euro operating profit has been made and the bottom line is a profit of 250 million €.

“From today’s perspective, the doubling of EBIT well protected,” Eder said Thursday in a press conference. Voestalpine is among analysts, however, known to give very conservative predictions. According to recent Reuters data, the experts expect, on average, EBIT of 865 million euros. BHF-Bank has raised in response to the figures, the target price by three to 35 €. On the stock market, the stock remained normal. The paper was two cents higher at 29.57 euros.

Voestalpine’s CEO Wolfgang Eder painted a positive picture for the coming months. “Once the crisis is not definitively shelved. But we expect a favorable development in Asia, South America and West Europe,” said Eder. The next year, Eastern Europe would again take passage and grow. Only for the USA, he completed a relapse into recession is not enough.

Even in the half year Voestalpine benefited mainly from the strong demand of the German automotive and mechanical engineers. Even the consumer products industry and energy sector saw growth again, “said Eder. “It will also be the driving forces of the future,” he added. To the weak expected Voestalpine steel demand from the construction industry. By austerity in many countries, public works contracts were canceled. Voestalpine but it was only marginally affected.

The Group is specialized in the most diversified companies. Only a third of the business makes Voestalpine with conventional steel. The rest is already made with processed products. The Linz is a major rail and switch manufacturers in the world. Around ten percent can be achieved in the automotive segment. The division delivered body parts to the automaker.

With an EBIT margin of eight percent Voestalpine was also one of the most profitable companies in the industry, “said Eder. He will retain this status. 600 million euros of costs a year, will be saved until 2012/13. Already this year, it will have reached half of it.

Even with the German steel manufacturers, business is fine again. When the industry leader ThyssenKrupp blast furnaces at full capacity. Germany’s second largest steelmaker Salzgitter last wrote for the first time after restarting the black.