February 1, 2018 / 1:04 PM / 6 months ago

Voestalpine sees positive impact on profit from U.S. tax reform

VIENNA, Feb 1 (Reuters) - Austrian steelmaker Voestalpine expects U.S. tax changes to boost its net profit by an upper single-digit euro amount in its 2018/19 business year, its chief executive said on Thursday.

Voestalpine operates 47 sites with an annual revenue of nearly one billion euros in the United States. It opened a state-of-the-art plant in Texas in late 2016.

The overhaul of the U.S. tax code, which includes cuts to corporate tax rates, improves the region’s attractiveness, Wolfgang Eder said in a statement.

“For Voestalpine ... an earnings improvement in the upper single-digit million euro range can be expected due to the reform (in the next business year),” he said.

The group’s current fiscal year ends March 31. It reported a 2016/17 net profit of 527 million euros but did not give a forecast for the current year.

Voestalpine’s new $1 billion Texas plant, the group’s biggest foreign investment, was an important part of its strategy to grow internationally and reduce its dependence on the Austrian market.

Voestalpine picked the United States mainly for its access to cheap energy. (Reporting by Alexandra Schwarz-Goerlich, writing by Kirsti Knolle, editing by David Evans)

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