ThyssenKrupp returns to profit

Executive Board Chairman Dr. Ekkehard Schulz: “The majority of the business areas generated a profit in the first quarter. This strengthens our confidence that we will reach our earnings goal in the current fiscal year – also thanks to the rigorous implementation of our cost-reduction and restructuring programs. However, as we regard the emerging economic recovery as still fragile, we remain cautious. We therefore continue to forecast adjusted earnings before taxes in the low three-digit million euro range.”

Order intake and sales were still down year-on-year but orders improved noticeably quarter-on-quarter with a rise of around €1.8 billion to €9.3 billion. Net financial debt increased only slightly by €71 million to around €2.1 billion. Compared with December 31, 2008, net financial debt decreased by €1.4 billion.

The Group anticipates that sales will stabilize in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in large part to the cost-cutting programs introduced. Adjusted earnings before interest and taxes (EBIT excluding nonrecurring items) will probably be in the high three-digit million euro range. Adjusted earnings before taxes (EBT excluding nonrecurring items) are expected to be in the low three-digit million euro range. Adjusted EBT will be significantly impacted by startup losses in the Steel Americas business area in the mid three-digit million euro range. Most of these startup losses are expected in the second half of the fiscal year.

Schulz: “Our aim is to return the Group to its profitable growth course and create more value consistently as soon as the economic situation allows. Our medium-term goal is to achieve sales of €50 – 60 billion, corresponding to earnings before taxes of over €4 billion. We have shown in the past that we can reach these levels of sales and earnings.”