Germany-based steelmaker ThyssenKrupp has announced its financial results for the third quarter ended June 30 of the financial year 2013-14, stating that it has achieved or slightly exceeded all operating and strategic targets for the third quarter.
For the given quarter, ThyssenKrupp registered a net profit of €39 million, compared to a net loss of €395 million in the same period of the previous year. The main drivers of the good performance were as expected efficiency gains, the profitable growth of the capital goods businesses, and the significant improvement at Steel Americas. Meanwhile, ThyssenKrupp's adjusted EBIT from continuing operations increased almost twofold year on year to €398 million in the third quarter.
During the given period, ThyssenKrupp recorded an order intake of €10.2 billion, up eight percent, and sales revenue from continuing operations of € 10.7 billion, also up eight percent, both year on year. In the third quarter, ThyssenKrupp's sales from continuing operations were higher year-on-year in all business areas except Steel Europe, where sales fell due to disposals.
In the third quarter, Steel Europe's shipments were down eight percent from the prior quarter mainly because of a drop in production due to operational issues and disruptions to production and shipping logistics due to storm Ela. Meanwhile, Steel Americas achieved a significant improvement during the third quarter, due to higher volumes and prices.
After a strong third quarter, ThyssenKrupp is optimistic for the full year 2013-14. The company forecasts its adjusted EBIT to almost double, compared to €586 million in the 2012-2013 financial year. For the first time in three years, ThyssenKrupp expects to achieve break-even to slightly positive net income.
