Balance sheet of Voestalpine subsidiary’s manipulated for years

Voestalpine presented its annual balance sheet on Wednesday, along with the revelation of an accounting scandal. According to the “Oberösterreichische Nachrichten” (OÖN), a manager at a Voestalpine subsidiary had been recording figures for his division as more positive than they actually were for years. This misrepresentation amounted to incorrect bookings totaling 100 million euros over a period of ten years and involved at least two individuals, including the former managing director of the company in question and an accountant.

The matter is currently under investigation by a specialized consultant and a German law firm, with results expected by August or September of this year. The former managing director of the company involved is no longer employed by the Voestalpine group since autumn 2023. Although the incorrect postings did not impact cash flow, they required correction in the 2022/23 balance sheet, resulting in a reduction of Voestalpine’s equity from EUR 7.6 billion to EUR 7.5 billion as of March 31, 2024. The company stated that the financial consequences have been fully addressed in the 2023/24 consolidated financial statements.

Voestalpine confirmed that at least two individuals were involved in the deliberate incorrect bookings and that further details will be disclosed once the final report is received. Civil lawsuits or criminal charges will be considered after the matter is clarified. The discovery of the issue was made in February 2024 as part of internal group controlling activities, and the Management Board of Voestalpine AG was not aware of or involved in the misconduct.

In addition to dealing with the accounting scandal, Voestalpine continues to operate in a variety of industries and markets, including the metal forming division. The company remains committed to addressing the issue transparently and ensuring the integrity of its financial reporting.