Germany-based steelmaker Thyssenkrupp has announced its financial results for the second quarter ended March 31 of the financial year 2020-21. The group has posted a net loss of €211 million for the given period, compared to a net loss of €948 million in the same period of the previous fiscal year, while its sales revenue amounted to €8.6 billion compared to €8.2 billion in the same period of the previous year. Meanwhile, ThyssenKrupp’s adjusted EBIT rose significantly to €220 million compared to the same period of the previous fiscal year.
“On the one hand, we were helped by the recovery in many of our markets. On the other, our performance measures are having the planned effect,” said Martina Merz, CEO of Thyssenkrupp.
In a structurally challenging market environment, in the second quarter order intake and sales at the company’s steel division were up 13 percent and eight percent respectively from the prior year. As a result of the recovery in the automotive industry and strong demand from restocking particularly at steel processors, business continued to pick up. Adjusted EBIT of the steel division improved significantly to €47 million, amid higher capacity utilization together with the positive price trend, initial effects from the ongoing restructuring, and the initiated performance measures.
In light of the good first half performance, the company has raised its forecast for the 2020-21 fiscal year for both sales and earnings. The company said it expects a further continuing economic recovery. According to the company, depending on the further progression of the coronavirus pandemic, sales are expected to grow in the low two-digit percentage range, but remain below the level prior to the pandemic.