• Germany's news in English
 
jobs_header_v3

Steel demand slumps, ThyssenKrupp suffers

The Local · 12 Feb 2013, 09:12

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

Facebook Twitter Google+ reddit

"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)

Facebook Twitter Google+ reddit


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
VW bosses forced to pay back private jet costs

Bosses at troubled German auto giant Volkswagen have been forced to pay the company back millions of euros for flights on its private jets, the Bild am Sonntag newspaper reported Sunday.

Germany arrests Marxist militant 'leader'
Photo: Julian Stratenschulte / DPA / AFP file picture

A radical Marxist suspected of belonging to a left-wing extremist group accused of terrorism by Turkey has been arrested in Germany, judicial sources said on Saturday.

Afghan teen arrested over German murder-rape
Photo: Hendrik Schmidt / DPA / AFP file picture

A teenage Afghan asylum seeker has been arrested on suspicion of the rape and murder of a 19-year-old female student in Germany, police and prosecutors said Saturday.

Nazi POW leaves estate to 'kind' Scottish village
The former German soldier stayed on to work in the Perthshire village for a time after the war. Photo: Andy Buchanan / AFP file picture

A former Nazi prisoner of war has left his entire estate in his will to a small village in Scotland to show his appreciation for the kindness he received there during his captivity.

US tries to block Chinese purchase of Aixtron
Photo: Oliver Berg / DPA / AFP

US President Barack Obama on Friday moved to block a Chinese company's purchase of German semiconductor equipment maker Aixtron by rejecting the inclusion of Aixtron's US business in the deal.

Merkel to chart 2017 election battle at party congress
Photo: Tobias Schwarz / AFP

After Donald Trump's shock victory, Francois Hollande's decision not to seek re-election and populism on the rise, German Chancellor Angela Merkel is next up on the campaign podium to set out her strategy for winning in 2017 polls.

Berlin vs Munich: whose newborn polar bear is cuter?
Berlin's (left) and Munich's (right) newborn bears. Photos: Tierpark Berlin / DPA

Both city zoos welcomed baby polar bears into the world in November, with Berlin zoo its releasing first photos on Friday. But which one is more adorable?

Learn how to speak German like a silver screen icon
Dirty Harry. Photo: DPA

We all agree that there is no other option than to learn irregular German verbs by rote. But when you want a bit of downtime, why not learn from your big screen heroes?

Stolen Dachau 'Work will set you free' gate found: police
The entrance to Sachsenhausen concentration camp. Photo: DPA

An iron gate from the former Nazi concentration camp in Germany's Dachau with the slogan "Arbeit macht frei" ("Work will set you free") has been found two years after it was stolen, police said Friday.

Mystery flight path artist draws new message in sky
Photo: DPA

A pilot who likes to draw patterns in the sky using his flight path has returned with his greatest artwork yet.

Lifestyle
10 German Christmas cookies you have to bake this winter
Sponsored Article
The key to launching your international career
Lifestyle
Our 10-step guide for doing Christmas just like a German
National
Here's why so many Germans vote for the far-right AfD
National
7 events in Germany that'll make December unforgettable
Lifestyle
7 frosty German sayings to make you a winter wordsmith
National
This is how unequal German society has become
National
Six things you should know about the Lufthansa strike
National
9 ways living in Germany will make you a better person
National
These 10 German Christmas markets cannot be missed
Features
8 German words that unlock amazing secrets in English
Culture
10 German words with simply hilarious literal translations
Lifestyle
7 things Germans do that make foreigners feel awkward
International
Why Donald Trump's grandad was booted out of Germany
National
This is what is really inside your Döner kebab
National
Rejoice! Christmas markets start opening across Germany
Education
These German universities are best at landing you a job
Travel
Why Heidelberg is Germany's most inspiring city
Lifestyle
This soppy German Christmas ad will bring you to tears
National
Here's where Germans speak the best (and worst) English
Culture
10 German books you have to read before you die
Culture
U-Bahn train found filled with autumn foliage in Berlin
Features
Seven German words that unlock amazing secrets about English
Travel
Germany's ten most beautiful towns you've never visited
6,552
jobs available
Toytown Germany
Germany's English-speaking crowd