Generic filters
Exact matches only
FS Logoi
The voestalpine result will be dampened by the economic slowdown in Q3 2023/24
© voestalpine AG

voestalpine AG: Economic slowdown dampens economic results

Kategorien: |
Autor: Charlotte Lange

Datum: 14. Feb. 2024

February 13, 2024 | The weak economic development, particularly in Europe, put pressure on voestalpine’s earnings in the first three quarters of the 2023/24 financial year (April 1 to December 31). Overall, however, the international steel and technology group benefited from its global positioning and industry diversification.

The energy sector developed positively in the first nine months of the current financial year. The Railway Systems division recorded good demand for the first three financial quarters – as the world market leader in railway infrastructure systems, voestalpine benefited from the high global demand for rails, switches and systems for fully digital monitoring of railway routes. In the aviation sector, the positive trend continued in the first three quarters.

However, the consumer goods industry as well as the construction and mechanical engineering industries continued to show weak demand. The tool making sector in particular recorded a decline in demand in the second and third quarters of 2023/24. Demand from the automotive industry in the first three quarters was stable as supply chain problems were largely resolved. The warehouse technology division continued to show good utilization in the first nine months of the financial year.

“The expected economic downturn was clearly noticeable in the first nine months of the current financial year. Overall, however, voestalpine is solidly positioned due to its broad orientation in different market segments and economic regions. However, it will be crucial that the competitiveness of the industrial location is ensured. The key points for this are the expansion of renewable energy supply and networks as well as the extension of electricity price compensation until 2030,” emphasizes Herbert Eibensteiner, CEO of voestalpine AG.

New stainless steel factory in Kapfenberg

The new stainless steel plant in Kapfenberg has been in sole operation since the beginning of the 2024 calendar year; the old stainless steel plant was shut down as planned at the end of 2023. In the new plant, voestalpine produces up to 205,000 t of high-performance materials annually for the automotive, aviation and energy industries, thereby securing around 3,500 jobs in Kapfenberg and Mürzzuschlag.


Although the voestalpine Group’s overall development is solid, the expected economic downturn is clearly noticeable in some areas. The interest-sensitive segments of construction, mechanical engineering, the consumer goods industry and general investments in industrial production facilities have weakened significantly and, from today’s perspective, will not show any recovery for the remainder of the 2023/24 financial year. The automotive industry segment will remain stable at the current level for the last quarter of 2023/24. The energy segment will continue its previous good momentum. Continuing good market development is also expected for the railway systems sector. The same applies to the aviation industry, which has seen a dynamic recovery following the massive slump caused by the COVID-19 pandemic.

From a regional perspective, Europe is also expected to experience the weakest economic development worldwide for the remainder of the 2023/24 financial year. The Eurozone has been on the verge of recession in the last two quarters and no positive impulses are expected for the last quarter of the current financial year either. Development in North America is still considered to be relatively robust. In South America – where Brazil is particularly relevant for the voestalpine Group – the economy appears to have cooled down somewhat in the last financial quarter. China’s overall economy is growing overall, although the individual sectors are developing very differently. The problems in the real estate sector are unlikely to be solved in the short term and will subsequently put a strain on the associated sectors, such as the construction industry. However, the manufacturing industry, particularly in the high-tech sector, will continue to develop positively, as in the previous financial year.


(Source: voestalpine AG/2024)