* Low global growth and raw materials prices weigh
* Profitability target for 2020 unchanged
* Sees revenues growth from Americas, China (Adds detail on investment plans in Americas, China)
By Shadia Nasralla
VIENNA, Dec 17 (Reuters) - Austria’s Voestalpine cut its 2020 revenue target by a quarter to 15 billion euros ($16.3 billion) on Thursday citing mainly low global growth and slumping raw materials prices.
Chief Executive Wolfgang Eder told Reuters in August that low prices for commodities including iron ore, aluminium, coal and titanium had derailed the company’s revenue target.
Voestalpine increasingly specialises in making finished parts for the automotive, aerospace and rail industries, with traditional steel production currently generating only about 30 percent of its revenue.
“We will continue to grow more strongly in the most technologically sophisticated and demanding segments and further extend the value chain to the end consumer,” Eder said in a statement.
“We also want to extend our expertise in future material technologies, such as powder metallurgy and nickel-based technologies,” he said, referring to products used in the transport sectors.
Other 2020 targets include raising non-Europe revenue to 40 percent of its total from 25 percent, tripling investment in the Americas to 3 billion euros and completing six new plants in China.
By then, China should generate 800 million euros in revenue, almost three times its current share, it said.
“The focus is not purely on increasing revenue, but rather on increasing profitability,” Eder said.
Voestalpine recorded 2014/15 revenue of 11.2 billion euros and produced an earnings before interest and tax (EBIT) margin of 7.9 percent which it aims to raise to 9 percent by 2020.
It said it had already almost reached its 2020 target for an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 14 percent.
Voestalpine shares were up 0.72 percent to 27.94 euros on Vienna’s benchmark ATX (Austrian Traded Index) which was up 0.91 percent as of 0856 GMT.
$1 = 0.9216 euros Reporting by Shadia Nasralla; editing by Francois Murphy and Jason Neely