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ThyssenKrupp Reports Six-Month Results, Full-Year Outlook
05/18/2009 - ThyssenKrupp reported earnings of €(215) million (before taxes) on sales of €21.4 billion for the first six months of fiscal 2008/2009.
ThyssenKrupp reported earnings of €(215) million (before taxes) on sales of €21.4 billion for the first six months of fiscal 2008/2009. The Group said results were heavily impacted by collapsed demand, sharply falling prices, and continued declines in the international auto markets and civil shipbuilding.
First half earnings before taxes (a loss of €215 million) compare to €1,388 million in the year-ago period, while €(0.35) earnings (loss) per share compares to €1.85 for the year-earlier period. Earnings were impacted by €265 million in major nonrecurring items, including €109 million in pre-operating costs for the new plants in Brazil and the USA. The company also incurred impairment charges on property, plant and equipment and restructuring expenses.
First half sales represent a 16% decline from sales of €25.5 billion last year. Order intake decreased by 25% to €20.5 billion as compared to €27.4 billion in the prior year.
The Group’s six-month EBITDA came to €906 million, compared with €2,280 million a year earlier. Earnings before taxes and major nonrecurring items amounted to €50 million, compared with €1,499 million in the prior-year period.
On a segment basis, ThyssenKrupp’s Steel Segment’s earnings were still positive in both the 2nd quarter and the 1st half, while the Stainless Segment returned a loss in both quarters. Both Segments’ results in the first half were impacted by inventory write-downs.
Although the Group’s Technologies Segment reported positive income through the first six months, it did record a loss in the second quarter, due primarily to substantial charges at the shipyards, and declining business in the automotive and construction machinery sectors, The Group’s Elevator Segment delivered a good earnings contribution, with profits increasing in all business units. The Services Segment reported a loss for the first half year.
The Group had net financial debt of €3,687 million at March 31, 2009. On September 30, 2008 the Group reported net financial debt of €1,584 million, and on March 31, 2008 net financial debt stood at €1,988 million.
The Group had net financial debt of €3,687 million at March 31, 2009. On September 30, 2008 the Group reported net financial debt of €1,584 million, and on March 31, 2008 net financial debt stood at €1,988 million.
Looking ahead, ThyssenKrupp is expecting a significant drop in order intake and sales for full fiscal year 2008/2009, which it says will be reflected in earnings. Positive effects from falling input material prices, mainly in the 2nd half, are expected to only partly offset price and volume declines.
ThyssenKrupp said that it expects to end the current fiscal year with a loss before taxes and major nonrecurring items, including restructuring expense, project costs and impairment charges. Depending on future economic developments, a loss before taxes and major nonrecurring items in the mid to high three-digit-million euro range is expected.
ThyssenKrupp said that it expects to end the current fiscal year with a loss before taxes and major nonrecurring items, including restructuring expense, project costs and impairment charges. Depending on future economic developments, a loss before taxes and major nonrecurring items in the mid to high three-digit-million euro range is expected.
To counter the crisis, ThyssenKrupp said that it is implementing an extensive package of cost-cutting measures in addition to the previously announced strategic reorganization. The Group said these measures will make a key contribution to significantly strengthening its future earnings power. The Group is also taking targeted steps to significantly reduce net working capital, and to reduce or postpone the investment program.
