Thyssenkrupp presses on with split as profits rise
BERLIN: German industrial conglomerate Thyssenkrupp on Tuesday confirmed its earnings forecasts for the full year after increasing profits in its first-quarter, while announcing a January 2020 vote on its split into two separate firms.
Net profit at the group rose 69 per cent between October and December, to 136 million euros ($153 million).
Revenues at the steelmaker, whose product range stretches from submarines to elevators and car parts, edged two per cent higher to reach 9.7 billion euros.
Meanwhile adjusted operating profit fell 26 per cent, to 333 million.
“Thyssenkrupp is operating in attractive markets and our fundamental growth drivers are intact,” Chief Executive Guido Kerkhoff said.
“But the figures also show that we have to keep pressing forward with our performance programmes in all business areas,” he added.
The group said increased sales across all its business areas, notably the elevator business in Europe and North America, contributed to its higher revenues.
But even the standout division saw lower profits as higher raw material costs and tariffs on materials imports into the United States made themselves felt.
Based in Rhineland industrial city Essen, low water levels on the vital river artery following a hot, dry summer “severely” impacted Thyssenkrupp’s steel business by slowing shipping.
And the slowdown in production in the car industry following the introduction of new, tougher emissions tests also temporarily reduced demand for Thyssenkrupp’s products.