Germany-based steelmaker Thyssenkrupp has announced its financial results for the first quarter ended December 31 of the financial year 2021-22.
The group has posted a net profit of €106 million for the given period, compared to a net loss of €145 million in the same period of the previous fiscal year, while its sales revenue amounted to €9 billion, up by 23 percent year on year. Meanwhile, ThyssenKrupp’s adjusted EBIT rose significantly to €378 million.
In the given period, the company’s steel division was negatively impacted by supply shortages. Compared with the previous year, there was a decrease in both order intake volume and shipments. However, higher prices resulted in an overall increase of three percent in order intake to €2.5 billion and of 39 percent in sales to €2.7 billion. Despite strong increases in raw material and energy costs, adjusted EBIT of the steel division rose substantially to €124 million, compared to €20 million in the first quarter of the previous financial year, due especially to the noticeable upturn in average selling prices. This also reflects positive effects from ongoing restructuring and performance measures in connection with implementing the Steel Strategy 20-30.
The company stated that it is optimistic overall for the fiscal year 2021-22 due to the ongoing economic recovery and the continuation of structural improvements in its businesses. In view of the existing uncertainties including increasing input costs, the company remains cautious. Thyssenkrupp said it anticipates its adjusted EBIT to improve significantly year on year to €1.5-1.8 billion in the given financial year. The company expects a net profit of at least €1 billion for the financial year 2021-22.