Germany : ThyssenKrupp on track: 3rd quarter operating targets achieved or slightly exceeded Full-year forecast 2013/2014: Net income now expected at break-even to slightly positive
The transformation at ThyssenKrupp is bearing fruit. After a strong 3rd quarter, the Executive Board of the Essen-based industrial group is optimistic for the full year 2013/2014. Order intake, sales and adjusted EBIT increased as expected in both the first 9 months and the 3rd quarter. In the first 9 months the Group achieved net income of 243 million (prior year net loss of 527 million), to which the 3rd quarter contributed 39 million (prior year (395) million). The main drivers of the good performance were as expected the efficiency gains, the profitable growth of the capital goods businesses, and the significant improvement at Steel Americas. On this basis the Executive Board has again raised its forecast slightly for the current fiscal year: Full-year adjusted EBIT is now expected to double (prior year 586 million). For the first time in three years ThyssenKrupp expects to achieve break-even to slightly positive net income.
"We are making good progress on our path to becoming a new, integrated and more performance-focused ThyssenKrupp. For seven quarters we have continuously increased our earnings through our own efforts," says Dr. Heinrich Hiesinger, CEO of ThyssenKrupp AG. "We are moving in the right direction, our strategy is working, and our operating measures are clearly taking effect." Adjusted EBIT from continuing operations increased to 953 million in the first 9 months, up 120 percent from the prior year (prior year 433 million). Adjusted EBIT in the 3rd quarter came to 398 million, almost three times higher than the corresponding prior-year figure (prior year 136 million). In the first 9 months, five of the six business areas improved their margins. In the 3rd quarter all business areas including Steel Americas generated positive contributions.
Order intake from continuing operations came to 31.1 billion in the first 9 months, up 5 percent year-on-year despite negative exchange rate effects (prior year 29.6 billion). On a comparable basis, i. e. excluding currency and portfolio effects, order intake increased by 6 percent. 3rd quarter order intake was 10.2 billion, up 8 percent year-on-year (up 5 percent on a comparable basis).
Sales from continuing operations at 30.1 billion in the first 9 months (prior year 28.6 billion) and 10.7 billion in the 3rd quarter (prior year 9.9 billion) were higher year-on-year in all business areas except Steel Europe, where sales fell due to disposals. On a comparable basis sales increased year-on-year by 6 percent in the first 9 months and 5 percent in the 3rd quarter.
The Group's net financial debt decreased compared with September 30, 2013 from 5.0 billion to 4.1 billion in the first 9 months, equity increased from 2.5 billion to 3.2 billion, and gearing therefore improved significantly by around 71 percentage points to 129.9 percent.