Austrian steelmaker voestalpine has announced a 28 percent decline in its EBITDA for the first quarter ended June 30, due to the fallout from international trade conflicts and the associated, growing weakness of the global economy, which affects above all Europe’s export-oriented industries, and the slumping automotive industry in particular. The company is counteracting the current developments through intensified programs aimed at boosting efficiency and cutting costs.
In the same period, the company’s sales revenues amounted to €3.3 billion, down 3.8 percent year on year, mainly due to declining delivery volumes.
According to voestalpine, it can be said that the economic uncertainty has grown since the start of the business year and that negative effects from the global trade conflicts and/or Brexit are likely to increase further. The company said that so far a situation where rising ore prices occur in tandem with falling steel prices has been seen for short periods only. This is why the company said that it expects the present unfavorable constellation will be resolved during the second half of the business year.