The Voestalpine steel company has faced criticism for incorrect bookings in the total amount of around 100 million euros. This issue was only mentioned in the annual report and was not addressed when the annual results were presented in early June. The Chairman of the Supervisory Board, Wolfgang Eder, expressed his surprise at the annual general meeting at the public discussion regarding the beautification of the balance sheet.
Eder noted that misstatements over the past 12 years averaged €8.3 million per year, but the company generated €20 billion in EBITDA during the same period. Despite the wrong bookings, the stability of the company was not disturbed, and the funds were not withdrawn. Eder, who is up for re-election, assured shareholders that the group’s internal control system remained intact.
CEO Herbert Eibensteiner admitted that communication could have been better regarding the wrong bookings. He admitted that the company should have been more accessible on the matter. Despite complying with the law and correcting erroneous disclosures since 2012, Voestalpine has faced criticism from shareholders and is under investigation by regulatory authorities.
The matter is currently being investigated by a German law firm and auditors, and detailed information will be shared with shareholders once investigations are complete. Shareholders expressed skepticism at an annual meeting and questioned whether improvements to balance sheet management should be made to prevent future errors.
Live coverage of key decisions was interrupted due to ongoing investigations and public scrutiny before they were made public. It remains to be seen how this issue will impact Voestalpine’s future prospects as it navigates through these challenges.