TKS expects to maintain profitability through fiscal year
Germany's ThyssenKrupp Steel AG (TKS) was pretty successful in the first six months of fiscal 2002/2003 and is expecting it to continue for the rest of this current fiscal year unless German and European markets do not experience any deterioration.
TKS started to make profit within the first half ending in March 2003 and recorded €229 million profit, whereas reported a €65 million loss in the same period in previous fiscal year.
According to the International Iron and Steel Institute (IISI), TKS's crude steel
production for the first half of the current fiscal year was higher than the international average. In the interim report on the first half of 2002/2003 recently released by TKS, it is observed that the steel division reporting the highest growth rate, played a great role in group's pre-tax income with €229 million income. An official stated that results of the
stainless steel and carbon steel units were higher than budgeted. Besides, contrary to slow steel demand in
Germany and elsewhere in
Europe, this year order intake rose by €500 million to €6.2 million, while sales grew up by €400 million reaching to €6 million. In
China, which is believed to remain as the biggest growth market for the next couple of years relying on the economic indications, TKS has three joint ventures where two of which mostly serves to the
automotive industry. Since 1997 company's sales in this country reached to €337 million in fiscal 2001/2002, equivalent to an increase of around 60%.
Company attributes this success to its carbon steel unit focusing on making steel
production at one site and
stainless steel unit enjoying to be a world market leader, as well as using equipments bringing efficiency, cost-cutting actions and many long-term supply agreements.
On the other hand, related to TKS's effort to globalize its businesses with a purpose to participate actively in the further consolidation of the international steel industry, company has strategic alliances, for example, with Japanese JFE Group for
automotive research and development and Nippon Steel for electrical steel. Added to that, TKS acquired the 100% interest in Spanish hot-dip galvanizer Galmed SA for its carbon steel unit that is seeking opportunuties to further internationalize its downstream coating, processing and service operations.
Stainless steel unit which disposed its quarto
plate activities is proceeding in reorganizing its
distribution network in
Europe starting with the acquisition of the service center operations of TAD Metals in
Europe's second largest
stainless market,
Italy.