Vienna - Austrian steelmaker voestalpine AG on Thursday reported strong increases in revenue and profit for its second business quarter, as it was able to pass along higher commodity prices to customers.

Net profit for the period from July to September (voestalpine's business year runs from April to April) increased to 279 million euros (352 million dollars), from 192 million euros in the same period last year.

Operating profit rose to 428 million euros, compared with 302 million euros in the second quarter of 2007.

Sales climbed by 17 per cent, to 3.23 billion euros, as the company passed higher material prices on to the market.

However, voestalpine's automotive steel division was affected by the global economic crisis. Results in that division were dampened by production cuts implemented by many car producers in August and September.

Because of the economic climate, the company's management board said it would "critically and selectively revisit its structures and its cost position" and announced it would postpone its decision about building a steel mill on the Black Sea.

The management board said that despite the "significantly weaker results" in the current half of the business year, it intended to achieve results in the current year which match those of 2007/08, when voestalpine posted a net profit of 752 million euros. (dpa)