One might almost say – based on Wolf Haas – that something has happened once more: this year too there will be unplanned depreciation in the voestalpine Group. The stainless steel segment in particular is reacting to the recent collapse in earnings: Buderus Edelstahl – a candidate for value adjustments for years – is being sold. This sale and unscheduled depreciation impacted the operating result EBIT by 340 million euros.
There will be further depreciation in the automotive division, where a production site in Nagold will also be sold. The German activities will be written off by around 70 million euros.
“Changed economic conditions”
The bottom line is that the operating result (EBIT) of the voestalpine Group is burdened by depreciation of 410 million euros. The group traditionally does not provide an outlook for EBIT. Ebitda (i.e. earnings before interest, taxes, depreciation and amortization) is only slightly impacted – by depreciation on stainless steel. That will come to 1.6 billion euros, according to a release.
The reasons given are the “changed economic conditions for industrial companies”. Buderus is active in tool steel construction. It is noteworthy that extraordinary value adjustments occur in those divisions in which new board members take office on April 1st.
Author
Sigrid Brandstätter
deputy head of the economics department
Sigrid Brandstätter
