Germany-based steelmaker ThyssenKrupp has announced its financial results for the first quarter ended December 31 of the financial year 2014-15, achieving its operating targets for the given quarter. For the first quarter, ThyssenKrupp registered a net profit of €43 million, compared to a net loss of €70 million in the first quarter of the previous financial year. Meanwhile, ThyssenKrupp's adjusted EBIT from continuing operations increased by 29 percent year on year to €317 million.
During the given period, ThyssenKrupp's order intake amounted to €10.1 billion, falling five percent amid a challenging economic climate, while the company's sales revenue increased by 11 percent to €10 billion, both year on year.
In the first financial quarter, the company's Steel Europe division reported a decrease in orders and sales mainly due to the sustained decline in steel prices. Additionally, sales volumes were also impacted by production bottlenecks due to the delayed completion of a continuous caster modernization which in turn delayed the start-up of a relined blast furnace. Steel Europe's order intake in the given period decreased by eight percent to €2.1 billion, with sales revenues declining by four percent to €2 billion, both compared to the corresponding quarter of the previous financial year.
ThyssenKrupp also announced that it started production at a new automotive components site in Mexico, marking a significant increase of the production capacity in Puebla. The company said that the acquisition of several new orders necessitated a capacity expansion. The new plant in Puebla will assemble front axles for Volkswagen.