• Germany's news in English
 

ThyssenKrupp posts massive €4.7 billion loss

The Local · 11 Dec 2012, 07:49

Published: 11 Dec 2012 07:49 GMT+01:00

After announcing the $6.1 billion loss, the company said in a statement that it would pay no dividend for the last fiscal year because of an absence of distributable profits.

The world's 14th largest steel producer, the group had paid €0.45 per share in the prior year after posting a €1.8 billion loss.

It also confirmed the dismissal of three executive board members over its recent economic difficulties and wave of scandals.

Steel-making forms the historic core of ThyssenKrupp's business, which was formed in 1999 from the merger of two steel giants Thyssen and Krupp whose roots stretch back into the 19th century.

But the steel business is highly cyclical and has been severely hit by the economic downturn.

ThyssenKrupp -- which also makes elevators, industrial plant technology, submarines and car parts -- had been scheduled to publish its earnings results on Tuesday at its annual press conference.

It is currently looking for potential buyers for the two loss-making steel plants in the United States and in Brazil.

AFP/hc

The Local (news@thelocal.de)

Your comments about this article

09:42 December 11, 2012 by Berlin fuer alles
The economic 'boom' in Germany goes on then.
17:31 December 11, 2012 by Rischart99
So glad you couldn't be bothered to read the article before commenting. The loss is self inflicted due to bad investment decisions and a badly (Chinese) built coking plant.

Merkel isn't even a board member, so get some facts before putting your regular comment.
17:48 December 11, 2012 by Berlin fuer alles
@Rischart99

I thought Germany under Merkyl's guidance was immune to the economic downturn. Oder?

'But the steel business is highly cyclical and has been severely hit by the economic downturn.'
18:35 December 11, 2012 by Rischart99
The steel industry has always been cyclical, witness the steel closures of the 70's and 80's. Your assertion that Merkel is at fault for a company constructing a steel plant in Brazil that's several billion over cost is odd to say the least.

You're going to have to come up with something better than this to blame Merkel. Like I say get some facts to back up your argument.............
20:32 December 11, 2012 by Berlin fuer alles
Splitting hairs is not appropriate here. I refer back to my original point.
20:59 December 11, 2012 by Rischart99
No splitting hairs, you have NO point. TKS took bad investment decisions in 2 foreign countries, neither of which is ruled by Merkel. The construction was even more badly controlled with total cost overruns and accrued losses of several billion euros. The blame lies at the door of the TKS management, that is why several members of the board were removed.

If following your logic Merkel is responsible for all economic outcomes (even outside europe?) then she is also responsible for record sales at Audi, VW, Mercedes and BMW.
05:36 December 12, 2012 by honeybeee
Yes , I agreed with the above Rischart's viewpoint here , the success or failure about one corporate is all the key decisions what are made by their boardmembers , so how can people all blame to our dear Dr. Merkel ,even she is a super woman chancellor , she cant make all the decisions in every corner around country . But one fact I cant miss to point out here is the successful key for one company is that the boardmember to the company must make the right investment decisions especially under such hard economics environment . Another car-parts supplier Schaeffler is doing the positive business right now , they have expanded the Hungary and India factories this year and recruited employees there too and showed a positive EBIT in their recent financial report also .So maybe ThyssenKrupp should learn something from Schaeffler especially in their car-parts department coz the former is a professional successful model in that business field.
12:16 December 12, 2012 by raandy
The Steel Americas project was based on erroneous data(possible fraud) from the beginning.TK has stated that the bids for Steel America are way low and they will have to write off about 3.9B euros from the original market value. When they sell the American and Brazilian plants only about 30% of their business will be steel.

TK invested somewhere in the neighbor hood of 12B euros in the American and Brazilian projects.
Today's headlines
Migrants crisis
German media and celebs rally for refugees
A welcome party for refugees in Heidenau on Friday. Photo: DPA

German media and celebs rally for refugees

10 hours ago

Germany may have witnessed violent anti-refugee protests this week -- but the message from the country's media and celebrities is a loud and determined welcome for people fleeing the horrors of war.

Buzz grows over Poland Nazi treasure train
Ksiaz Castle in Poland, around where the treasure is fabled to be. Photo: Drozdp, via Wikimedia Commons

Buzz grows over Poland Nazi treasure train

15 hours ago

Poland's deputy culture minister has claimed to have seen a ground-penetrating radar image of the alleged Nazi train that has set off a gold rush, adding that he is 99 percent sure it exists, while other sources claim the treasure has already been found.

Migrants crisis
Mass pro-refugee rally held in Dresden
Photo: Oliver Killig / Picture Alliance / DPA

Mass pro-refugee rally held in Dresden

18 hours ago

Thousands of people took to the streets of the German city of Dresden on Saturday to welcome refugees, an AFP journalist at the scene said, following a string of violent anti-migrant protests in the region.

Migrant crisis
Austria refugee tragedy suspects appear in court
Screen shot from video by Andi Schiel

Austria refugee tragedy suspects appear in court

1 day ago

Four defendants were to appear in court in Hungary on Saturday over Austria's migrant truck tragedy, as a "horrified and heartbroken" UN chief called for international action to end Europe's refugee crisis.

German court: Ban on refugee demos must stay
Anti-refugee demonstrators carry a sign accusing Chancellor Angela Merkel of being a "traitor to the nation" this week in Heidenau. Photo: DPA

German court: Ban on refugee demos must stay

2 days ago

Update: A German court on Friday night reinstated a ban on rallies in an eastern town hit by violent anti-migrant protests, overturning an earlier decision that found the restriction to be "illegal".

Footballers gone wild
Neuer's 'glass palace' angers idyllic village
Tegernsee is a famous beauty sport. Photo: DPA

Neuer's 'glass palace' angers idyllic village

2 days ago

Villagers in the picturesque Bavarian region of Tegernsee are bristling at World Cup-winning Germany goalkeeper and Bayern Munich star Manuel Neuer's plan to build a huge glass villa on the shores of their beautiful lake.

Interview
'Berlin is kind of like the best American city'
Canadian composer and performer Owen Pallett. Photo: Brian Vu

'Berlin is kind of like the best American city'

2 days ago

The Local speaks with Oscar-nominated Canadian musician Owen Pallett about performing at legendary Berlin club Berghain - and just why the world's artists are so fascinated with the German capital.

Germany name squad for crunch Scotland match
Liverpool's Emre can has been called up to the Germany squad to face Scotland and Poland. Photo: DPA

Germany name squad for crunch Scotland match

2 days ago

Liverpool's uncapped defender Emre Can was on Friday called up to the Germany squad for the world champions' forthcoming key Euro 2016 qualifiers against Poland and Scotland.

How Brits in Germany are facing Brexit fears
How will life for Brits in Germany change if the Brexit happens? Photo: DPA

How Brits in Germany are facing Brexit fears

2 days ago

Greece is the talk of the town this year. But in 2016, it will be Britain questioning its EU membership. The referendum outcome could be life altering for many Brits living in Germany.

Honest senior rewarded for handing in €12,000
An 87-year-old pensioner found the cash in the bin. Photo: DPA

Honest senior rewarded for handing in €12,000

2 days ago

After throwing away €12,000 this week, a landlord in North Rhine-Westfalia thought he'd made one of the most expensive blunders of his life. But the money made it home safely, police said on Friday – and all thanks to an honest pensioner.

RECEIVE OUR NEWSLETTER AND ALERTS

National
Weekend of anti-refugee violence shocks Germany
National
Half of Germans 'have had sex in their car'
Society
Deadly stew spooks home vegetable gardeners
Politics
The man who brought two Germanies together
Features
Where to get your culture fix in Cologne
Education
Fairytale world of Brothers Grimm brought to life
Rhineland
Thieves leave 1,000 open beers untasted
National
Way to some Germans' hearts is through their wallets
National
Germany's biggest challenge: European refugee crisis
Travel
Where to get your adrenaline pumping in Germany
Technology
Could thieves hack into luxury cars?
What to watch out for when snapping your lunch
National
German lefties through history
National
The fight over prostitution heats up
National
Merkel: migrants, not Greece, are the real challenge
Features
How I explained the Queen to the Germans
Education
Why Germany does 'back-to-school' traditions better
National
Germans are ‘not how foreigners think’
National
A mum and daughter reunite 70 years after WWII
Sport
Bra stops bullet in hunting mishap miracle
National
Cows trample German woman to death in Graubünden Alps
Business & Money
Start-up helps new Berliners short cut bureaucracy
National
The 1,000s of Germans massacred after the Second World War
Sport
Germany star scores own goal with PR gaffe
Features
'Women-only' parking: sensible or sexist?
Politics
Satire and reality blur in parody party's strife
National
13-year-old boy detained for trying to join Isis
Culture
Berlin restaurant serves up Greek Crisis Menu
Rhineland
Doctor on trial after woman wakes in morgue
Society
Six odd things Germans do in the summer
Society
Police bust kinky Bavarian couple over painful love-making
Politics
Merkel brings Palestinian girl to tears
Hamburg
Amateur archaeologist finds Nazi gold hoard
National
Could Merkel learn a lesson in love from this doppelganger?
Travel
Why you should stay in Germany for the summer holidays
Sport
German press tell Schweinsteiger 'good riddance'
National
Hamburg gets a bouncing 100kg baby girl
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

6,967
jobs available
Toytown Germany
Germany's English-speaking crowd