• Germany's news in English
 

ThyssenKrupp posts massive €4.7 billion loss

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
Sudeten Germans give up 'right to homeland'
Sudeten Germans practising traditional dance at a gathering in 2014. Photo: DPA

Sudeten Germans give up 'right to homeland'

The Sudeten German Homeland Association has given up its claim to the group's former home in parts of the Czech Republic, quieting one of the final echoes of the Second World War. READ  

Minister draws fire over wage transparency plan
Families Minister Manuela Schwesig. Photo: DPA

Minister draws fire over wage transparency plan

Families Minister Manuela Schwesig confirmed on Sunday that she wants a new law allowing women to compare their wages with men doing similar work, provoking angry reactions from employers. READ  

Police wind down Bremen terror response
Heavily-armed police on patrol outside Bremen cathedral. Photo: DPA

Police wind down Bremen terror response

Police in Bremen said that the risk of a terrorist attack had been reduced in the city after they arrested two suspected arms dealers. The city remains under high alert, with special protection for the Jewish community. READ  

Germany's Schäuble softens Greece tone
Photo: DPA

Germany's Schäuble softens Greece tone

German Finance Minister Wolfgang Schäuble said Sunday Greece's new hard-left government needs "a bit of time" but is committed to implementing necessary reforms to resolve its debt crisis. READ  

UK Pegida rally dwarfed by counter-demo
Photo: DPA

UK Pegida rally dwarfed by counter-demo

An estimated 375 people turned out for the Germany-based PEGIDA movement's first demonstration in Britain on Saturday, but were outnumbered by a 2,000-strong crowd of counter-protesters, police said. READ  

Greek PM vows to 'start working hard' after vote
Photo: DPA

Greek PM vows to 'start working hard' after vote

Greek Prime Minister Alexis Tsipras vowed Friday to "start working hard" to implement vital reforms in the stricken eurozone country, after Germany's parliament approved a four month extension to its bailout. READ  

Ukraine: troop deaths 'serious breach' of truce
Photo: DPA

Ukraine: troop deaths 'serious breach' of truce

Ukrainian President Petro Poroshenko declared the killing of three government troops by pro Moscow rebels a "serious breach of the ceasefire", during a telephone call Friday with German Chancellor Angela Merkel, her office said. READ  

Man wins court battle over loud footsteps
Trouble at the top. Photo: DPA

Man wins court battle over loud footsteps

Germany's highest civil court ruled in favour of a man who swapped the carpet in his new apartment for parquet flooring, incurring the wrath of the retired couple who lived below him over his loud footsteps. READ  

Teachers to strike nationwide from Monday
Photo: DPA

Teachers to strike nationwide from Monday

Teachers all over the country are expected to stike starting Monday, German education trade union GEW said, after negotiations with the wage commission of the federal states (TdL) failed to achieve results. READ  

EU court deals blow to US Iraq objector's hopes
Andre Shepherd at the European Court of Justice in June 2014. Photo: DPA

EU court deals blow to US Iraq objector's hopes

American soldier Andre Shepherd, who applied for asylum in Germany as a conscientious objector against the war in Iraq after going AWOL from his unit, saw a judgement by the Court of Justice of the European Union (CJEU) go against him on Thursday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Features
Kafka: puzzling translators 100 years on
Business & Money
France or Germany: Which country really is the best country to work in?
Photo: Police
Rhineland
Student driver crashes tank into family garden.
Photo: DPA
Politics
There was a notable absence at the Anti-Semitism Commission
Sponsored Article
Tourist or lifer: what sort of expat are you?
National
How Dresden bombing still divides Germany, 70 years on
Sponsored Article
Are you an American expat? How to face FATCA
Photo: DPA
Gallery
Take a cute break with this gallery of baby animals
International
What's keeping UK expats from voting?
Photo: DPA
National
Terror alert at a new high. Should you be worried?
Gallery
The best regional foods TTIP opponents want to protect
Photo: DPA
Features
All you ever needed to know about Pegida
Photo: Shutterstock
Culture
This cosplayer did not think his plan through
National
Europe in statistics - from Spain to Sweden
Gallery
Top 12 German idioms
Culture
10 top tips for partying in Germany
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
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

3,199
jobs available
Toytown Germany
Germany's English-speaking crowd