Austrian steelmaker Voestalpine has projected its earnings to be between €800mn – €1bn for the fiscal year ending March 31, 2021 as steel demand recovery was seen in the second quarter.
The company restarted its small blast furnace in Linz, Austria with the capacity of 750,000mt of pig iron which was temporarily shut earlier. Steel demand rebounded in the second quarter (beginning in July), leading to better results for the company at the half-year point. Demand was attributed to restarted automotive production in the US and Europe. However, the company said that its customers in the OCTG and aerospace sector remained terribly affected by the COVID-19 pandemic. The company saw a 6.5pc reduction in workforce and hours during this period due to cost savings.
IN H1 FY21, the steel processor’s revenue fell by 21.9pc to €5.1bn ($6bn) from €6.5bn during the same period in H1 FY20. Voestalpine’s operating income declined by 40.6pc in the first half of the year to €395mn, compared with €666mn H1 FY20. The company saw a loss of €215mn in earnings before tax in H1 FY21 compared to a profit of €230mn in H1 FY20.
(€1 = $1.18)