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ThyssenKrupp Turns To Profit In Q3; Slightly Raises Earnings View

Thyssenkrupp 081414

German conglomerate ThyssenKrupp AG (TYEKF.PK) Thursday reported a profit in its third quarter, compared to a loss last year, benefited mainly by improved results in capital goods businesses and Steel Americas. For fiscal 2014, the company slightly raised its earnings forecast, and backed sales growth view. For the first time in three years, ThyssenKrupp now expects to achieve break-even to slightly positive net income.

For its third quarter, profit attributable to the stockholders was 39 million euros, versus last year's loss of 395 million euros. The company said its prior year figures have been adjusted.

Earnings before tax from continuing operations was 162 million euros, compared with loss of 205 million euros a year ago.

Earnings before interest and tax or EBIT surged to 349 million euros from prior year's 33 million euros. Adjusted EBIT grew 193 percent year-over-year to 398 million euros. Adjusted EBIT margin improved to 3.7 percent from 1.4 percent last year.

In the quarter, earnings before interest, tax, depreciation and amortization or EBITDA climbed 77 percent from last year to 628 million euros.

For the third quarter, net sales grew 8 percent 10.74 billion euros from 9.92 billion euros last year. Sales were higher year-on-year in all business areas except Steel Europe, where sales fell due to disposals and prices.

On a comparable basis sales increased year-on-year by 5 percent in the 3rd quarter.

Order intake for the quarter of 10.16 billion euros increased 8 percent on a reported basis and 5 percent on a comparable basis.

Looking ahead for fiscal 2014, full-year adjusted EBIT is now expected to double from prior year's 586 million euros. ThyssenKrupp now expects to achieve break-even to slightly positive net income.

The previous forecast for adjusted EBIT was to "almost" double from last year, and it expected a significant improvement towards break-even earnings.

The company continues to expect sales on a comparable basis to grow year-on-year by a mid to higher single-digit percentage rate.

ThyssenKrupp continues to expect that all business areas, apart from Steel Americas, will make positive contributions, while Steel Americas' loss will decline significantly.

Further for fiscal 2015, the firm still expects sales to increase further in line with the general growth of the economy, with a corresponding positive impact on earnings, and further significant improvement in earnings from "impact 2015" program.

ThyssenKrupp closed Wednesday's trading at 20.97 euros, up 0.36 euros or 1.75 percent.

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