Austria's Voestalpine posts quarterly core earnings below expectation
FY EBITDA seen at lower end of 1.7 bln to 1.8 bln euros
June-quarter EBITDA down 16.5% to 417 mln euros
Recasts first paragraph and adds share move in paragraph 8
By Chiara Holzhaeuser and Tristan Veyet
Aug 7 (Reuters) -Austria's Voestalpine VOES.VI reported first-quarter core profit below expectations on Wednesday and said it expects its annual earnings to come at the lower end of a forecast in light of weak economic momentum in Europe, particularly in Germany.
Germany's faltering car industry has been a drag for the speciality steelmaker's metal forming division, which accounted for a fifth of total group revenue in the last financial year.
The Linz-based group started reorganising its German automotive components business in the previous business year and announced impairment losses of around 70 million euros ($76.43 million) in March.
Voestalpine now sees its 2024/25 earnings before interest, taxes, depreciation and amortisation (EBITDA) at the lower end of a forecast range of 1.7 billion to 1.8 billion euros.
The projection came after the group reported June-quarter core earnings below analysts' expectation, mainly due to a 28 million euros impairment loss related to the ongoing sale of steel unit Buderus Edelstahl.
The company had announced the sale in March, resulting in a negative one-off effect on core earnings of about 90 million euros in the previous business year.
Voestalpine's EBITDA fell 16.5% to 417 million euros in the quarter ended June 30, also weighed down by the weakness in the German automotive industry.
Shares in Voestalpine were down 0.18%, as of 0736GMT, after rising as much as 5.75% earlier in the day.
($1 = 0.9158 euros)
Reporting by Chiara Holzhaeuser and Tristan Veyet in Gdansk; Editing by Subhranshu Sahu
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