Voestalpine AG, a global steel group based in Austria, presented its annual balance sheet on Wednesday, revealing an accounting scandal that has impacted the company’s financial performance. The scandal was disclosed by Voestalpine, along with details of an investigation into the matter by a specialized consultant and a German law firm.
According to the “Oberösterreichische Nachrichten” (OÖN), a manager at one of Voestalpine’s subsidiaries 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 discovery of the issue was made in February 2024 as part of internal group controlling activities. 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 Management Board of Voestalpine AG was not aware of or involved in the misconduct at any point during this time period.
Despite dealing with this accounting scandal, Voestalpine remains committed to operating across various industries and markets, including its metal forming division. The company is focused on addressing this issue transparently and ensuring that its financial reporting is accurate and trustworthy for stakeholders around the world.
It is important to note that while Voestalpine has addressed these issues within their annual balance sheet presentation, it may take some time before we see any changes reflected in their financial statements.
