FONT-SIZE Plus   Neg

Rheinische Post: ThyssenKrupp Mulls Selling Part Of European Steel Business

German steel giant ThyssenKrupp AG (TYEKF) is exploring the possibility of selling part of its European steel business, the Rheinische Post reported Saturday, citing sources close to the company. The sale would reportedly concern a minority stake.

ThyssenKrupp had said in February that it will cut 2,000 jobs as part of a restructuring program at its European steel business amid a "worsening steel climate in Europe". At that time, the company also said it was looking into the closure, relocation or sale of business units and facilities at Steel Europe, which currently has a workforce of around 27,600.

State-owned RAG Foundation is reportedly considering buying a stake in ThyssenKrupp. The move would ensure that the German state of North Rhine-Westphalia, which owns the RAG Foundation, would maintain its veto power after a possible increase in ThyssenKrupp's capital stock.

Currently the Krupp Foundation holds 25.3 percent of ThyssenKrupp's shares. However, that stake could reduce to 17 percent after a possible capital increase and as it reportedly lacks funds to buy more shares.

In mid-May, ThyssenKrupp reported a wider loss for its second quarter as results were impacted by a further impairment charge of 683 million euros associated with its Brazil and US steel plants that it is divesting.

The company's net loss for the quarter widened to 656 million euros or 1.28 euros per share from 587 million euros or 1.14 euros per share in the year-ago period.

TYEKF closed Friday's trading at $19.86, up $1.26 or 6.77 percent on a volume of 900 shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Shares of Daimler AG were losing around 3 percent in the morning trading, after the German auto giant trimmed its forecast for fiscal 2016 revenues and unit sales, while it backed adjusted EBIT view. Meanwhile, in the third quarter, the company recorded higher earnings and revenues, with increased sales volumes. German software developer SAP SE reported Friday lower profit in its third quarter due to higher stock-based compensation expense. However, revenues were higher. All regions posted improved results. Citing the strong cloud performance, the company said it is confident to deliver a strong fourth quarter, and also raised its full-year 2016 operating profit and revenue outlook. Shares of Ericsson were declining around 3 percent in the early morning trading after the Swedish telecom operator reported Friday a loss in its third quarter as net sales were hurt by weaker demand for mobile broadband, especially in markets with weak macro-economic environment.
comments powered by Disqus
Follow RTT