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thyssenkrupp Reports Weak Quarterly Results

Steel News - Published on Fri, 14 Feb 2020

Image Source: thyssenkrupp
In a difficult economic environment, thyssenkrupp’s sales were virtually stable at EUR 9.7 billion in the first three months of the current fiscal year 2019/2020. While the capital goods businesses achieved in some cases double-digit growth rates, the materials businesses were clearly impacted by price and volume losses. This is also reflected in order intake , which was 4 percent lower overall at EUR 9.7 billion. Adjusted EBIT amounted to EUR 50 million and as expected was down from the prior year (EUR 217 million) particularly due to the situation at Steel Europe and a general weakening of the automotive market. thyssenkrupp AG CEO Ms Martina Merz said “The latest figures are not great. But we are convinced that we are on the right track. A decision on the Elevator transaction is imminent, the negotiations with codetermination representatives on the Steel strategy are making progress, and we are improving our performance. The bottom line: We are moving in the right direction.”

Key figures 1st quarter 2019/2020

thyssenkrupp reported a net loss of EUR 364 million for the 1st quarter 2019/2020 (prior year EUR 68 million). Alongside operating performance, this was due to restructuring expenses in connection with the implementation of “newtk”, increased interest expense for financial debt, and one-time expenses in connection with the Elevator transaction. After deducting minority interest, the net loss in the 1st quarter 2019/2020 was EUR (372) million (prior year EUR 60 million)

2019/2020 forecast - Taking into account the continuing limited visibility and reduced planning reliability, thyssenkrupp is maintaining its forecast for the current fiscal year 2019/2020. Against the background of progress in the capital goods businesses, overall weaker earnings in the materials businesses and intensified restructuring measures already initiated, the Executive Board expects adjusted EBIT to be level with the prior year (prior year EUR 802 million). Free cash flow before M&A is expected to be lower year-on-year (prior year EUR (1,140) million). Expenses for the intensification ofrestructuring measures (special items in the mid three-digit million euro range) are expected to result in a significantly higher net loss for the year than in the prior year EUR (260) million).

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Posted By : Yogender Pancholi on Fri, 14 Feb 2020
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