logo
Plus   Neg
Share
Email

Thyssenkrupp Stock Down On Cautious FY Profit View

Shares of thyssenKrupp AG (TYEKF.PK) were losing around 10 percent in the morning trading in Germany on Friday after the steel giant issued a profit warning adversely affected by provisions for cartel proceedings.

The company said it now expects full-year net income of 0.1 billion euros, and adjusted EBIT of 1.6 billion euros.

In a statement, the company noted that thyssenkrupp Steel Europe AG, alongside other steel companies and associations, is the subject of ongoing investigations by the Federal Cartel Office into alleged cartel agreements relating to the product groups heavy plate and flat carbon steel.

The pending investigations concern, in particular, allegations concerning collusion in the determination of surcharges and premiums for steel prices.

The company said it takes this matter very seriously and, with external support, has conducted its own internal investigation of the matter. Based on the facts currently known, the company said it cannot exclude substantial adverse consequences with regard to the Group's asset, financial and earnings situation.

Due to new developments in the investigation process, thyssenkrupp has decided to accrue risk provisions in the consolidated financial statements. This will result in a net income for the year below the previous year's level of 271 million euros.

In addition, thyssenkrupp has decided to set aside provisions for risks arising from quality issues in the Components Technology business area. Together with production and shipping restrictions at Steel Europe in the 4th quarter and earnings at Elevator Technology below expectations in the 4th quarter, this means that adjusted EBIT in 2017/2018 is expected to be 1.6 billion euros.

The consolidated financial statements for the 2017/2018 financial year will be published as planned on November 21.

In Germany, thyssenKrupp shares were trading at 17.10 euros, down 10.31 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
SiriusXM launched a new subscription package exclusively for college students at a steep discount, just ahead of the fall semester. The satellite-radio giant introduced the "Student Premier" Package that provides students with all the content in SiriusXM's "Premier Streaming" package for $4 per month. This is a 69 percent discount from the regular price of $12.99 per month for Premier Streaming. Apple Inc. warned that its newly launched titanium Apple Card can be easily damaged if not stored properly. The company advised that the card must be kept away from fabrics like leather and denim as they can cause permanent discoloration. The tech giant has posted a support page that provides instructions to users on how to protect and maintain their Apple Card. Southwire Co. LLC recalled about 3000 units of Garvin pop-up electrical outlet floor box kits for concerns of fire hazard. The company said the electrical receptacles can overheat when in use. Southwire already received three reports of the floor boxes overheating. However, there have been no injuries reported so far.
Follow RTT