February 17, 2014 / 2:30 PM / 4 years ago

Voestalpine's new saving plan seen around 500 mln euros

2 Min Read

VIENNA, Feb 17 (Reuters) - Austrian steelmaker Voestalpine is expected to announce a new two-year cost-savings plan of around 500 million euros ($684 million) next month, analysts said on Monday.

The company, which is battling steel market oversupply and weak demand from the energy sector, told analysts on a conference call last week it would most likely announce such a plan in the second half of March.

Voestalpine, whose last, 620 million-euro savings scheme is coming to an end, did not say how big the new one would be but said it would run for the next two business years.

Erste Bank analyst Franz Hoerl wrote in a note: "The volume of the new programme is said to be not too much smaller (we guess around 0.5 billion euros)."

Another analyst who declined to be named said he expected it to be "several hundred million", while Baader Bank analyst Christian Obst wrote last week he expected "more than 300 million euros" in the next three years.

A company spokesman said Voestalpine was still working on the details of the plan.

$1 = 0.7307 euros Reporting by Alexandra Schwarz-Goerlich; Writing by Georgina Prodhan; Editing by Mark Potter

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