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ThyssenKrupp Q1 Net Profit Rises; Confirms Full-year Forecast

German industrial and technology group thyssenKrupp AG (TYEKF.PK) reported that its net profit for the first-quarter 2018/2019 rose to 136 million euros from 81 million euros in the prior year. Earnings per share were 0.22 euros up from 0.13 euros last year. In the prior, the US tax reform in particular had a negative one-time impact on net income.

"We are fully focused on doing so and are confident that we will make clear progress this fiscal year towards our growth and margin targets for 2020/2021," said Guido Kerkhoff, CEO of thyssenkrupp AG.

Operating earnings of the continuing operations or adjusted EBIT amounted to 168 million euros and were below the high level of the prior-year quarter.

In the first- quarter 2018/2019, thyssenkrupp received new orders worth 8.1 billion euros, up 6 percent year-on-year. Sales were 3 percent higher at 7.9 billion euros.

thyssenkrupp said it had set itself an ambitious timetable for the separation of the Group. The final vote on the plans is to take place at the Annual General Meeting in January 2020. With the announcement of the leadership structures, the preparations are proceeding swiftly and on schedule. The composition of the two management teams is to be decided in spring 2019. Details of the financial structure, brand identity and strategy of the two new companies will be announced in May. Both companies are to commence operations at the start of the next fiscal year on October 1, 2019.

thyssenkrupp has confirmed its forecast for the current fiscal year 2018/2019 but at the same time economic and political uncertainties are growing. For adjusted EBIT of the continuing operations the Group aims to achieve a figure above 1 billion euros, compared to 706 million euros reported last year.

For the year 2019, net income is forecast to increase significantly year-on-year from last year's 60 million euros. It is expected that the costs of preparing the separation of the Group will be significantly outweighed by the earnings improvements at the continuing operations and by the positive effects arising at the closing of the steel joint venture

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