Austria's Voestalpine reports profit in second quarter

November 18, 2010 | 20:19

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Austrian steel giant Voestalpine reported Thursday a significant hike in profit in the second quarter of its financial year, citing economic recovery in most of its main markets.

The group saw a profit of 128.6 million euros ($175.5 million) in July-September, up from 28.3 million euros in the same quarter last year.

Operating profit, as measured by earnings before interest and tax (EBIT) meanwhile rose to 210.9 million euros from 70.4 million euros in the second quarter of the 2009/2010 year.

Revenues also increased to 2.64 billion euros from 2.07 billion euros, the company said in a statement, citing "an overall positive development" in its main markets.

However, chief executive Wolfgang Eder urged caution regarding the extent of the recovery, noting differences between regions and industrial sectors.

"As dramatically as the broadly-based economic reversal began two years ago in the fall of 2008, so swiftly and unexpectedly did the recovery start in the summer of 2009 at least for the industry," he said in a statement.

"(However) for the near future, we should be satisfied with growth that is not quite so dynamic, but modest and sustainable," he cautioned.

While parts of Asia and Europe as well as Brazil had experienced growth, the United States remained "critical," Voestalpine said.

Cuts in public spending were also casting a shadow on the construction sector.

For the six months to September, Voestalpine still saw positive results, with profit up to 249.7 million euros, and EBIT increasing to 414.2 million euros.

In April-September 2009, the company had suffered a loss of 19.8 million euros, with operating profit at 42.7 million euros.

For the full 2010/2011 financial year, Voestalpine said it was banking on doubling last year's operating profit of 352 million euros.

AFP

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