The Diesel crisis voestalpine brings the tooth
LINZ / VIENNA. Operating result fell by almost a fifth in the first half – automakers slow down new car manufacturing.
Automotive manufacturers are currently installing less voestalpine profiles.
Only two weeks ago, Wolfgang Eder, Managing Director of voestalp, had to report a profit warning. The annual result is not over but less than one billion euros. He confirmed this yesterday's semi-annual conference in Vienna.
In addition to the costs of rehabilitating the blast furnace and international trade disputes (see the adjacent article), the group also suffers from the weakened automotive market. The share issue mentions "short-term and sometimes significant reductions in orders". This has paid for two sectors that give the car industry a lot of results.
Eder said lower orders reduced capacity utilization at normal levels. Before this production exceeded the limit. He assumes that European car manufacturers will use the turnaround time at the turn of the year as a valve to further reduce capacity. "It's exciting," said Eder. He expects that plant days are generally longer.
The uncertain outlook was also the topic of the Upper Austria car industry journalists at yesterday's industry meeting. The autocluster automotive industry 2018 took place in voestalpine Stahlwelt. Volkswagen-induced non-return valve causes a number of diesel engine exhaust emission test (WLTP), "directly affects our suppliers," confirms the cluster chief Wolfgang Komatz. 90% of the production of auto parts is exported, 60% on the German market. But: "It's a jam, not a break," the industry agrees.
In addition, yesterday's event broke the message that premium carmaker BMW – prominently represented in Upper Austria at the Group's largest motor factory – grew with surprisingly strong earnings. In the Core Automotive segment, profit before interest and taxes (EBIT) in the third quarter fell 47 percent to EUR 930 million.
Reporters can hardly design. For example, an entrepreneur in Upper Austria says that during the first quarter of 2019 he would have to adapt to a specific share of 6,000-300,000 copies. This is unusual for short-term car manufacturers – who do not always handle their suppliers. "We are dealing with unpredictable models and we get reliable statements from manufacturers," said Markus Huemer, a supplier of Hörschinger's automotive industry, Polytec.
Polytec profit minus 28 percent
About a quarter of Polytech's automotive parts are transferred to VW. But: "It's not a general financial problem, but diesel fuels dislocations." The diesel crisis is already evident for the first nine months: the Group's profit after taxes dropped by 28.4 percent to EUR 22.2 million during the first three quarters.
Autozulieferer Fill Gurten CEO Wolfgang Rathner is not familiar with the diesel crisis: the tool maker has long expanded the path from a classic powertrain to lightweight construction and e-vehicles.
Linz's automaker Heinz Hollerweger (Seat) speaks of a powerful segment of the automotive industry. "It's painful, but it can be healing, and car companies make good money."
Fire and expensive renovation
The first half of the Voestalp went well, but was in no way predicted. Despite a 6.7 billion euro (plus six percent) sales, EBIT decreased by 18 percent. The Voestalpine share was again one of the losers on the Vienna Stock Exchange.
In a semiannual press conference, CEO Wolfgang Eder explained the reasons: The cost of repairing the blast furnace in the result was 150 million euros. This could, as it were originally planned, be replaced by only one third.
For example, the global conflicts in the United States, for example, appear for the first time, for example, because the Swedish Uddeholm mill produces less stainless steel in China. All in all, such effects cost EUR 30-40 million in earnings.
The Texas seedlings should deliver 2.5-4 million euros of operating profit (EBIT) a year. Now, four-week production is lacking due to flood and gas explosion. Detail on the Edge: Only one crane had to wait six days. "In Linz, the repair would have been much faster," says Eder.
The introduction of new car factories in the US also cost more than planned. Add to this turbulence in the European automotive industry
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