Austria's Voestalpine lowers 2019 profit forecast as weak demand from automotive sector
11 Nov 2019 11:44 reported by Margaret Yeh
According to the report, Austrian Voestalpine, a leading technology group focusing on product and system solutions based on steel and other metals, lowered its 2019 profit forecast as prolonged weak demand from the automotive sector as well as low steel prices.
The core profit was expected to fall by 17%. The revenue from the automotive industry accounted for one-third of Voestalpine’s total revenue. Therefore, the gloomy automotive market, coupled with steel import increase and pressure on oil prices, significantly affects the company’s earning.
According to Eurofer, the European steel industry association, the steel consumption in the second quarter of this year had dropped by 7.7% year on year, which might remain the same in 2020.
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