Voestalpine leans on restructuring measures as it sees no economic relief

By Bernadette Hogg

(Reuters) -Voestalpine expects no improvement in the challenging economic conditions in the coming months, the Austrian steelmaker said on Wednesday after it reported a decline in half-year revenue.

The company, which makes speciality steels used by the auto industry, said it would continue to implement reorganization measures, including job cuts at two sites in Austria, to combat the continued challenges.

Suppliers for the auto industry have felt the knock-on effects of weak demand and growing competition from China, with U.S. import tariffs adding to the industry's strife.

"We are consolidating operations, especially in Germany, and adapting to the reduced demand," CEO Herbert Eibensteiner told reporters when asked about how the company was adapting to the auto industry struggles.

"We expect to see the first positive effects of these restructuring measures already this year, by the end of this financial year, according to plan," Eibensteiner added.

The company's automotive components segment continued to be affected by the very subdued automotive production, particularly in Europe and especially in Germany, it said.

Group revenue fell to 7.59 billion euros ($8.85 billion) in the first half of the 2025/26 financial year, from 8 billion a year earlier. That was broadly in line with the average forecast from analysts polled by LSEG.

The company's core profit (EBITDA) improved slightly to 722 million euros, beating analysts' expectations of 694 million euros.

Eibensteiner said on the press call that Voestalpine would reduce operations at its Austrian sites in Kindberg and Murzzuschlag, impacting around 280 full-time workers and 60 temporary staff across these locations.

The company had 4.1% fewer employees by September 30 than it did on the same date last year.

($1 = 0.8575 euros)

(Reporting by Bernadette Hogg in Gdansk, editing by Milla Nissi-Prussak)