Austria's Voestalpine discovers balance sheet manipulation
VIENNA, June 5 (Reuters) -Austrian steelmaker Voestalpine VOES.VI has discovered balance sheet irregularities in the range of 100 million euros ($108.63 million) at one of its subsidiaries, a company spokesperson said on Wednesday.
"Towards the end of the fourth quarter of the business year 2023/24 it was discovered within a company of the Metal Forming Division that intentional journal entries had been made in the recognition and measurement of assets and liabilities to improve reported profits," the company said in its annual report published earlier in the day.
The spokesperson detailed the amount, adding the impact was not cash-effective and that no outflow of funds had occurred.
"Specifically, regarding advance payments within inventories and other receivables (including contract assets), assets were overstated or derecognitions were omitted in the context of accounting for tools and development services, as well as price adjustments for serial production," the annual report said.
The company has launched an internal investigation into the irregularities, which have taken place over a period of ten years, the spokesperson said, adding a former manager of the division who left the company in 2023 was under suspicion.
Earlier, Voestalpine reported its core annual earnings fell by about a third as expected, but its better-than-expected fourth-quarter performance and outlook lifted the group's shares.
($1 = 0.9206 euros)
Reporting by Alexandra Schwarz-Goerlich; Writing by Christoph Steitz; Editing by Josie Kao
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