Wednesday , October 5 2022

Diesel crisis voestalpine brings a tooth


Diesel crisis voestalpine brings a tooth

LINZ / VIENNA. Operating result dropped by almost a fifth in the first half of the year – automakers are slowing down the production of new cars.

Diesel crisis voestalpine brings a tooth

Car manufacturers are currently installing fewer profile profiles. Image: (voestalpine)

Just two weeks ago, Voestalpine CEO Wolfgang Eder had to announce a profitable warning. The annual result will not be overcome but below one billion euros. He confirmed this at a press conference in Vienna yesterday.

Apart from the costs of rehabilitation in blast furnaces and international trade disputes (see neighboring article), the group also suffers from a deteriorating automotive market. The letter to shareholders indicates 'short-term and sometimes significant reductions' in orders. It cost two divisions that give the automotive industry a lot of results.

Eder said lower orders have reduced capacity utilization to a normal level. Previously, production has reached the border. He predicts that European car manufacturers will take advantage of the time at the turn of the year as a valve to further reduce capacity. "It will be exciting," Eder said. He expects holiday holidays will tend to be longer.

An unsafe view was also the topic among the automotive industry suppliers of Upper Austria at yesterday's industrial meeting. Automobile industry 2018 car cluster took place in voestalpine Stahlwelt. Volkswagen's diesel-powered diesel engine exhaust emission test (WLTP) "directly affects our suppliers," says cluster manager Wolfgang Komatz. 90 percent of automotive parts are exported, of which 60 percent are in the German market. But, "It's a dent, not burglary," the industry agrees.

In addition to yesterday's development, there was news that BMW's premium car maker – prominently represented in Upper Austria with the largest engine maker in the group – had a surprisingly strong drop in profit. In the automotive industry, earnings before taxes and taxes (EBIT) declined 47 percent to 930 million euros in the third quarter.

Suppliers can hardly plan. For example, an Upper Austrian entrepreneur says that in the first quarter of 2019 he should adjust to deliveries ranging from 6,000 to 300,000 units for a particular share. This is unusual for short-term car manufacturers – who do not always do well with suppliers. "We are dealing with unpredictable changes to the models and we are getting from the credible statement of the manufacturer," said the operation chief at the Hörschinger Polytec carmaker Markus Huemer.

Polytec's profit minus 28 percent

About a quarter of Polytec's automotive production goes to VW. But: "It's not a general economic problem, but a disc." Diesel crisis is already evident in figures for the first nine months: Group profit after tax fell by 28.4 percent to 22.2 million in the first three quarters.

Wolfgang Rathner, Managing Director of Autozulieferer Fill in Gurten, does not feel the Dieselaz crisis: The toolmaker has long since expanded its journey from a classic powertrain supplier to lightweight construction and electronic vehicles.

Linz Heinz Hollerweger (Seat), Linz Cars Manager, talks about the distinct tooth of the automotive industry. "It's painful, but it can be healing, and the authors still make good money."

Fire and expensive renovations

Fire and expensive renovations

The first half of the Volstalpin was good, but it was never predicted. Despite a record sale of 6.7 billion euros (plus 6%), the operating result (EBIT) declined by 18%. The Voestalpine share was again one of the losers on the Vienna Stock Exchange.

At the six-month press conference, CEO Wolfgang Eder said: The cost of repairing blast furnaces was 150 million euros. This could – unlike originally planned – be offset by only a third.

For the first time, the effects of global trade conflicts with the US are evident, for example, because fewer stainless steels are processed in China than the Swedish factory in Uddeholm. Overall, these effects cost between 30 and 40 million euros in revenue.

The Iron Production Plant in Texas should provide an operating profit (ebit) of between 2.5 and 4 million euros per year. There are now four production weeks missing due to flooding and gas explosion. Detail on the edge: Only one crane had to wait six days. "It would be much faster in Linz," says Eder.

The introduction of new car racing operations in the US also costs more than planned. Add to that the turmoil in the European automotive industry

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