Voestalpine, a steel company, has faced criticism for incorrect bookings totaling around 100 million euros. This issue was only mentioned in the annual report but not addressed when the annual results were presented in early June. The Annual General Meeting was held and Supervisory Board Chairman Wolfgang Eder expressed surprise at the public discussion surrounding the balance sheet embellishments.
Eder stated that mispostings over the past 12 years averaged 8.3 million euros per year, but the company generated 20 billion euros in EBITDA during the same period. Despite the incorrect bookings, the company’s stability was not compromised, and no funds were withdrawn. Eder assured shareholders that the internal control system of the group remained intact. He is up for re-election in this meeting and admitted that communication could have been better regarding the incorrect bookings. He also acknowledged that it would be beneficial to be more forthcoming about such issues in future reports.
CEO Herbert Eibensteiner agreed with these sentiments and admitted that communication could have been improved regarding this issue. Despite acting legally and correcting mispostings since 2012, Voestalpine faced criticism from shareholders and is currently under investigation by the Financial Market Authority. A German law firm and auditors are examining this matter, and detailed information will be shared with the public once investigations are complete. The live stream of the Annual General Meeting was cut short before crucial resolutions were made due to ongoing investigations and public scrutiny.
The matter of incorrect bookings has raised concerns among shareholders who expressed skepticism at Voestalpine’s ability to maintain its financial stability despite these discrepancies. As such, discussions around balance sheet embellishments likely continue as stakeholders seek greater transparency from Voestalpine regarding its financial practices.
Overall, while Voestalpine has acted legally to correct these mistakes since they were first discovered in 2012, there remains a lingering sense of unease among investors who are eager for greater transparency from this major player in Europe’s steel industry.
