• Germany edition
 
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

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)

Don't miss...X
Left Right

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
Manhunt on for police officer's killer
Police searching the area on Thursday morning have released an e-fit of the suspect. Photo: DPA/Polizei Hessen

Manhunt on for police officer's killer

A police officer was shot dead in a street in western Germany on Wednesday night, prompting a large-scale manhunt for the culprit. READ  

'Auschwitz criminal,' 89, dies ahead of extradition
Photo: DPA

'Auschwitz criminal,' 89, dies ahead of extradition

An 89-year-old American and alleged Nazi war criminal died just hours before a US court approved his extradition to Germany, his lawyer said late on Wednesday. READ  

Robots could take half of jobs in Germany
The employee of the future? Photo: DPA

Robots could take half of jobs in Germany

More than half of the jobs currently being done in Germany could be taken over by robots in the next 20 years, according to a think-tank. READ  

Germany puts 700,000 WWI docs online
Prisoners of War pictured in 1918. Photo: Bundesarchiv/Bild 183-S45825

Germany puts 700,000 WWI docs online

Hundreds of thousands of rare records and images from World War I have been put online by the German government, ahead of Monday's 100th anniversary of the start of the conflict. READ  

Merkel to push for 'swift' EU Russia sanctions
Chancellor Angela Merkel and President Vladimir Putin chat with Fifa President Sepp Blatter (c) in Brazil before the 2014 World Cup final. Photo: DPA

Merkel to push for 'swift' EU Russia sanctions

UPDATE: Russia's failure to help quell the armed conflict in eastern Ukraine and fully assist the investigation into the downing of Malaysia Airlines flight MH17 demanded a tough response, a German government spokesman said on Wednesday. READ  

Löw to remain Germany coach to 2016
Joachim Löw (l) during a coaching session in Brazil. Photo:DPA

Löw to remain Germany coach to 2016

UPDATE: Joachim Löw will remain German national football team coach following the World Cup victory in Brazil, he confirmed on Wednesday. READ  

Pressure on police over anti-Semitic protests
A pro-Palestine demonstration in Berlin on Tuesday. Photo: DPA

Pressure on police over anti-Semitic protests

Demands are growing in Germany for the prosecution of protesters in Berlin, Frankfurt and other cities who led anti-Semitic chants and incited violence against Jews over Israel's military offensive in Gaza. READ  

The Local List
The 12 best words in the German language
Photo: DPA

The 12 best words in the German language

The Local List has covered all aspects of German words, from the untranslatable to the longest. But we've never done a ranking of what are simply the best words in the German language, until now... READ  

Munich police find 49 refugees on one train
Police arrested three Italians for allegedly driving 25 Syrians into Germany on Tuesday. Photo: Bundespolizei

Munich police find 49 refugees on one train

Police in Munich found 49 refugees on one train which arrived at the city’s central station from Italy on Monday night. Officers in the Bavarian capital have reported a “huge increase” in the number of people arriving illegally over the last few weeks at Munich's train terminal. READ  

Yoga helped Jogi's boys bring World Cup home
Coach Joachim Löw ensured his team had a yoga instructor with them at all times. Photo: DPA

Yoga helped Jogi's boys bring World Cup home

Germany’s World Cup winning football team have revealed one of the secrets of their success in Brazil this summer – yoga. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Politics
View from Germany: 'Nobody will win in an economic war with Russia'
Photo: DPA
Business & Money
Jobtalk: How innovative is Germany?
Photo: DPA
Gallery
German Bucket List: How many of these can you tick off?
Photo: DPA
Gallery
Joachim Löw: A career in pictures
Photo: Submitted
Society
Is this expat cat the world's oldest?
Photo: DPA
Gallery
Germany's week in pictures: July 12th - July 18th
Photo: DPA
National
Heatwave to bring highs of 36C to Germany
Photo: DPA
Analysis & Opinion
Should Germany follow France and ban the burqa?
Photo: DPA
Business & Money
Which workers is Germany short of?
Photo: DPA
Gallery
Ten best expat jobs in Germany: Which one would you choose?
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: Shutterstock
Features
Some of the most embarrassing mistakes you can make in German
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
CurrencyFair: Why it pays when making overseas transfers
Sponsored Article
Bilingual school turning education on its head
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

3,236
jobs available
Toytown Germany
Germany's English-speaking crowd