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Voestalpine further cuts FY'20 EBITDA forecast

Austrian steelmaker Voestalpine AG further slashed its fiscal 2020 EBITDA forecast as it flagged an impairment charge of €280 million across its key business segments.

Full-year EBITDA is now expected at about €1.2 billion from the previously lowered €1.3 billion, according to a Dec. 16 news release.

The impairment charges includes a €200 million write-off in Voestalpine's steel division, mainly driven by high iron ore prices and low scrap prices on its direct reduction plant in Texas.

The company also flagged €40 million in write-offs at its automotive plant in Cartersville, Ga., due to lower-than-expected production and higher personnel costs.

Voestalpine also estimated special write-offs and restructuring costs of about €35 million at its Buderus Edelstahl GmbH unit in Germany, where 1,500 jobs may be cut amid uncertainty in the automotive sector and rising imports and costs.

About €20 million in intangible assets will be written off at voestalpine Tubulars GmbH & Co KG due to the impact of U.S. tariffs on European steel and aluminum products.

Voestalpine said it will implement cost-cutting measures to save €50 million by the end of the fiscal year and at least €100 million by fiscal 2020/2021.

The company plans to recommend a full-year dividend below the prior year's €1.10 per share.