By Cecilia Butini

 

Austrian steelmaker Voestalpine AG said Thursday that it would book around 200 million euros ($237.2 million) in write-offs in its current fiscal year 2021.

The write-offs are due to impairment losses at its Voestalpine Texas site and "to a lesser extent" at Voestalpine Tubulars and will have an impact on the company's earnings before interest and taxes.

They are non-recurring and aren't cash-effective and won't have an impact on company earnings before interest, taxes, depreciation and amortization, Voestalpine said.

The decision concerning the write-offs became necessary "due to global market changes accentuated by the Covid-19 pandemic," the company said.

Voestalpine also said it expects its Ebitda for the fiscal year ending March 31 to come in a range of EUR800 million-EUR1 billion, assuming no new restrictions are put in place to curb the spread of the coronavirus.

It has previously guided for Ebitda between EUR600 million and EUR1 billion.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

October 22, 2020 09:44 ET (13:44 GMT)

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