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ThyssenKrupp posts massive €4.7 billion loss
Photo: DPA

ThyssenKrupp posts massive €4.7 billion loss

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

German heavy industry giant ThyssenKrupp said on Monday it would not pay any annual dividends after it posted a loss of €4.7 billion for the year following a write-down of two loss-making steel plants.

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)

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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.
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