• 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
Poland bridles at German minimum wage
Photo: DPA

Poland bridles at German minimum wage

Germany's newly-introduced €8.50 minimum wage is raising hackles at Polish trucking companies, who say they shouldn't have to pay their drivers at that rate for the hours they spend on their western neighbour's roads. READ  

Life sentences meted out in murder-for-hire
A man photographs an appeal for witnesses in the death of Christin R. in 2012. Photo: DPA

Life sentences meted out in murder-for-hire

A Berlin judge on Thursday sentenced four people to life sentences in a sordid conspiracy murder case in which a pizza delivery driver was paid €500 to kill a young woman for her life insurance. READ  

Jobless numbers rise to top 3 million
Men at work. Photo: DPA

Jobless numbers rise to top 3 million

German jobless numbers rose this month, bringing unemployment up to seven percent, the Federal Labour Agency (BA) reported on Thursday. READ  

Frankfurt man loses airport job over Isis links
Security checks at Frankfurt airport. Photo: DPA

Frankfurt man loses airport job over Isis links

In a decision announced on Wednesday, a Frankfurt court upheld the dismissal of a man from his job at Frankfurt airport over his close friendship with a foreign citizen with ties to terrorist group Isis. READ  

Cologne Karneval scraps Charlie Hebdo float
Image courtesy Festkomittee Kölner Karneval

Cologne Karneval scraps Charlie Hebdo float

Cologne's planned Charlie Hebdo float in its Rosenmontag parade was a false start, after the organising committee scrapped its construction over security concerns. READ  

Overnight raids bust up smugglers ring
File photo: DPA

Overnight raids bust up smugglers ring

Federal police arrested 12 people on Wednesday night after a national raid by police broke apart a smuggling ring. READ  

Anti-euro AfD split over Pegida ties
Former Pegida spokesperson Kathrin Oertel and Brandenburg head of AfD Alexander Gauland. Photo: DPA

Anti-euro AfD split over Pegida ties

Germany's upstart anti-euro AfD party will seek to mend a rift among members on whether to forge close ties with an emergent "anti-Islamisation" movement at a congress this weekend. READ  

Court grants kids right to know donor fathers
Photo: DPA

Court grants kids right to know donor fathers

The Supreme Court (BGH) decided on Wednesday that the children of sperm donors have a right to know who their biological father is at any time. READ  

Russia may declare 1990 reunification illegal
Russian President Vladimir Putin. Photo: DPA

Russia may declare 1990 reunification illegal

More than 25 years after the Berlin Wall's fall, Russian lawmakers are mulling a proposal to condemn West Germany's 1990 "annexation" of East Germany as Moscow's answer to Western denunciation of its seizure of Crimea. READ  

No room for scooters on the bus: Court
Photo: DPA

No room for scooters on the bus: Court

A court in North-Rhine Westphalia found on Wednesday that there is no obligation for buses or trains to make room for mobility scooters - and that it's actually dangerous to bring them aboard. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
FATCA: 'The age of financial privacy is over'
Gallery
The best regional foods TTIP opponents want to protect
Photo: DPA
Features
The rise and spread of Pegida
Photo: Shutterstock
Culture
This cosplayer did not think his plan through
National
Europe in statistics - from Spain to Sweden
Photo: DPA
Politics
The Local's report from Pegida's largest ever demonstration.
Sponsored Article
Top-notch tech boosts bilingual schools
National
Six stories that will rock Germany this year
Photo: DPA
National
Terror alert at a new high. Should you be worried?
Dresden skyline and river by night. Photo: DPA
Politics
What does Dresden have against Muslims?
Photo: DPA
National
What were your favourite news stories of 2014?
Gallery
Top 12 German idioms
National
Why has The Local got a new logo?
Photo: DPA
National
This German was abducted and tortured by the CIA
Culture
10 top tips for partying in Germany
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Berlin
The Local's series on 25 years since the fall of the Berlin Wall
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

3,459
jobs available
Toytown Germany
Germany's English-speaking crowd