Plus   Neg

ThyssenKrupp H1 Profit Falls; Affirms FY Outlook - Quick Facts

German industrial and technology group thyssenKrupp AG (TYEKF.PK) on Tuesday reported net income for the first half of the year 2018/2019 of 59 million euros, down sharply from 343 million euros in the prior-year period.

The company noted that it is announcing the results following the planned steel joint venture not going ahead and the announcement of a fundamental strategic realignment of the Group.

In addition to the operating performance, an increase in the provision formed at the end of the last financial year for risks from cartel proceedings to the amount of the expected fine of slightly more than 100 million euros had an impact on net income.

After deduction of minority interests, net income for the half year was 36 million euros, compared to 320 million euros a year ago. Earnings per share fell to 0.06 euros from 0.51 euros last year.

Adjusted EBIT fell to 685 million euros from 943 million euros in the year-ago period.

However, sales for the period grew 2 percent from last year to 20.4 billion euros. The company noted that all businesses except Materials Services and Steel Europe contributed to the increase in the first half. The main growth driver was the elevator business in the USA and Europe.

Order intake increased 4 percent to 20.5 billion euros.

For the current fiscal year 2018/2019, thyssenkrupp confirmed its forecast for the Group, which it provided on May 10, 2019.

The company forecasts adjusted EBIT for the year of 1.1 billion euros to 1.2 billion euros. The comparable prior-year figure was 1.4 billion euros.

The company expects the net income for the year to be negative. This includes restructuring expenses for future performance improvements, the provision for the near-term, final and mutually agreed conclusion of the cartel proceedings for heavy plate with the Federal Cartel Office as well as expenses for the preparation of the IPO of the elevator business.

In addition to the economic slowdown, especially in the automotive sector, the company's full-year forecast takes into account all effects resulting from the reintegration of the Steel business and the expected expenses for the implementation of the strategic realignment in the current fiscal year.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Lawyers for the state of Oklahoma urged a judge on Monday to hold Johnson & Johnson (JNJ) responsible for the country's opioid epidemic. Oklahoma Attorney General Mike Hunter, in his closing arguments of the eight-week trial in Cleveland County, called the pharmaceutical company the "Kingpin" behind... Pizza chain Blaze Pizza has announced plans to offer a keto-diet-approved pizza crust, which will only have 6 grams of carbs. The pizza chain will swap flour for ingredients like flaxseeds, eggs, and cheese to offer the first-ever official keto-diet approved pizza. "As the first national chain... Even as Amazon.com Inc. kicked off its Prime Day annual shopping event on Monday, employees are expressing their dissatisfaction with the company. This year's Prime Day, Amazon's biggest celebration of deals, kick-started officially on Monday with more than one million offers for Prime Members in select countries around the world. The 48-hour extravaganza is the longest Prime Day ever.
Follow RTT