Inspite of difficult economic environment, ThyssenKrupp’s sales remained stable at EUR 9.7 billion in the first three months of the current fiscal year 2019/2020. Although the capital goods businesses achieved double-digit growth rates in some cases, 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 was EUR 50 million, down from the prior year (EUR 217 million) particularly due weakening of the automotive market and prevailing situation at Steel Europe.
Martina Merz, Chief Executive Officer of ThyssenKrupp AG, said that the latest figures are not great. But they are convinced that they are on the right track. He said, “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”. “We are moving in the right direction” he added.
The company reported a net loss of EUR 364 million for the 1st quarter 2019/2020 (prior year EUR 68 million). This can be attributed 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 alongside operating performance. The net loss in the 1st quarter 2019/2020 was EUR (372) million (prior year EUR 60 million) after deducting minority interest.
2019/2020 forecast – Thyssenkrupp is maintaining its forecast for the current fiscal year 2019/2020 taking into account the continuing limited visibility and reduced planning reliability. 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).
Source: Press release
