Germany-based steelmaker ThyssenKrupp has announced its financial results for the first half ended March 31 of the financial year 2013-14, stating that it has achieved all operating and strategic targets for the first quarter.
In the first half, ThyssenKrupp registered a net profit of €269 million, compared to a net loss of €822 million in the first half of the previous year, mainly due to efficiency gains, strong growth in the capital goods businesses, and the elimination of losses as well as disposal gains from divestments and restructurings. Meanwhile, ThyssenKrupp's adjusted EBIT from continuing operations increased significantly year on year to €555 million in the first half. For the whole financial year 2012-13, the company's adjusted EBIT was €586 million.
Commenting on the net profit registered for the first half, ThyssenKrupp CEO Dr. Heinrich Hiesinger said, "We have achieved positive net income for the first time in seven quarters. This shows that our efficiency program impact is working and our culture change is really bringing about a stronger performance ambition."
During the given period, ThyssenKrupp recorded an order intake of €20.9 billion, up four percent, and sales revenue from continuing operations of € 19.4 billion, up seven percent, both year on year. The company's sales revenues were higher year-on-year in all business areas except Steel Europe, where sales decreased due to disposals and prices. In the first half, Steel Europe's order intake was €4.7 billion and sales amounted to €4.5 billion, both decreasing by six percent year on year, while Steel Americas recorded an order intake of €1.2 billion and sales at €1.1 billion, increasing by eleven percent and eight percent respectively year on year, due to higher sales volumes and prices.
As of March 31, the group's net financial debt was reduced further to €4 billion, down significantly from €5.3 billion one year earlier.
After a successful first half in which ThyssenKrupp met or exceeded all of its operating targets, the company has raised its sales forecast for the full year. In the second half, the steelmaker expects its sales growth rate to be a higher single-digit percent figure than the seven percent recorded in the first half, while it forecasts its adjusted EBIT for the full financial year to almost double compared to €586 million in the 2012-2013 financial year.