• Germany's news in English
 

Steel demand slumps, ThyssenKrupp suffers

Published: 12 Feb 2013 09:12 GMT+01:00

"Our business performance in the 2012/2013 fiscal year will be characterised to a very large extent by the continued absence of a global economic recovery, with an unsolved debt crisis in particular in the eurozone and slower growth in the emerging economies," ThyssenKrupp said in a statement.

The group said it expected sales "to remain at the prior-year level of around €40 billion, provided there are no major dislocations on the raw materials markets."

And underlying profit, as measured by earnings before interest and tax (EBIT), "should be around €1.0 billion ... assuming that the slower activity on the materials markets at the beginning of the new fiscal year compared with the prior year continues but does not progressively worsen," it said.

ThyssenKrupp, which runs it business year from October to September, booked EBIT of €1.4 billion in the year ended September 30, 2012.

In the first quarter of the current business year, the three months to December, ThyssenKrupp turned in net profit of €35 million, compared with a loss of €460 million a year earlier.

But net profit from continuing operations fell by 29 percent to €29 million.

First-quarter EBIT fell by 14 percent to €219 million on stagnant orders of €9.642 billion and an 8.0 percent drop in sales to €8.837 billion.

"We cannot be satisfied with the group's current earning power," complained chief executive Heinrich Hiesinger. The steel division in particular was being hit by falling demand and downward pressure on prices.

Alongside steel, ThyssenKrupp also makes elevators, industrial plant technology, submarines and car parts, most of which reported stronger business in the first quarter.

Last week, ThyssenKrupp unveiled plans to axe more than seven percent of the workforce at its Steel Europe division to make the business more competitive.

ThyssenKrupp said it would axe "more than 2,000 jobs" out a total workforce of 27,600 at its Steel Europe division in a €500 million cost-cutting drive.

AFP/jcw

The Local (news@thelocal.de)

Your comments about this article

13:36 February 12, 2013 by melbournite
The bottom has dropped out of the spoon market! You can't give them away! Soon everyone will be able to eat their soup and chocolate mousse for free
18:40 February 12, 2013 by raandy
may be some one is steeling their business.
21:41 February 12, 2013 by Pablo H.
The current ThyssenKrupp desaster began already with the planing of the new steel factories in Brasil and USA. I don't understand why Thyssen Krupp as a global player acted so carelessly. Especially it is well known that the economy in Brasil grow very strength and with this the rate of price increase. The plan from ThyssenKrupp was to manufacture steel in a low cost country, like Brasil it was ten years ago.
Today's headlines
Train strikes
Train drivers confirm new strikes
Trains cancelled. Photo: DPA

Train drivers confirm new strikes

German Train Drivers' Union (GDL) boss Claus Weselsky said on Wednesday that his members would walk off the job after DB refused to accept an ultimatum he issued earlier in the week, although he did not say when or for how long they would strike. READ  

Judge rules smoking senior can't be evicted
Friedhelm Adolfs. Photo: DPA

Judge rules smoking senior can't be evicted

The Supreme Court (BGH) has decided that a landlord had no right to throw out the man being called "Germany's second-most famous smoker after Helmut Schmidt" without due notice. READ  

Fearlessly Jewish on the streets of Munich

Fearlessly Jewish on the streets of Munich

While the world watched with shock as a Jewish man encountered abuse on the streets of Paris for wearing a kippah, The Local talks to a Munich man who has been doing the same for two years - with surprising results. READ  

'Bomb' sent from Germany to Sweden

'Bomb' sent from Germany to Sweden

Swedish police are checking a suspicious package apparently sent from Germany to a local newspaper in Sweden that previously published controversial Muhammad cartoons. READ  

Ukraine crisis
Government condemns Ukraine rebel advance
Ukrainian government troops ride a tank on the way out of Debaltseve on Wednesday. Photo: DPA

Government condemns Ukraine rebel advance

The German government said on Wednesday that pro-Russian rebels' advance into the eastern Ukrainian city of Debaltseve was a serious breach of ceasefire terms agreed last week in Minsk. READ  

The Local List
Germany and the seven deadly sins

Germany and the seven deadly sins

Beer, chocolate, car keys! Lock them all away, say Germans, who more than half say they partake in Lent, the seven-week fasting period before Easter, but more for health rather than religious reasons. READ  

Schäuble rejects Greek bailout without reforms
Wolfgang Schäuble at negotiations in Brussels on Tuesday. Photo: DPA

Schäuble rejects Greek bailout without reforms

UPDATE: A spokesman for Finance Minister Wolfgang Schäuble said on Wednesday that any extension of international loans to Greece beyond the end of the month was "inextricably" linked to reforms agreed to by Athens under its current bailout. READ  

Politician wants last call on late-night beers
Day drinking it is! Photo: DPA

Politician wants last call on late-night beers

A municipal politician is saying that Berlin needs to reconsider its alcohol sales rules and is proposing a ban on booze sales between 10pm and 5am. READ  

Police find 104 rabbits in Stuttgart flat
Imagine ten times this many rabbits. Photo: Shutterstock

Police find 104 rabbits in Stuttgart flat

Police in Stuttgart were in for a hopping surprise when they searched a flat on Tuesday and found it full to bursting with furry mammals. READ  

German reporter 'spy' arrested in Mozambique
A South African National Defense Force sodlier takes part in a training exercise as part of Operation Rhino in the Kruger National Park, South Africa's flagship national wildlife park on 19 July 2011

German reporter 'spy' arrested in Mozambique

Two journalists, a German and a Swede, were held briefly by police on Monday while investigating rhino poaching in southern Mozambique. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
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

3,526
jobs available
Toytown Germany
Germany's English-speaking crowd