ThyssenKrupp in the 1st half 2009/2010
Stronger signs of recovery in 2nd quarter / Positive earnings performance: €504 million EBT generated in 1st half / Outlook confirmed: Significant earnings improvement expected for full fiscal year
Global economic activity has stabilized in recent months - albeit at a low level. Nevertheless, the effects of the deep economic and financial crisis were still clearly visible in the performance of ThyssenKrupp in the 1st half 2009/2010. Sales and order intake decreased noticeably year-on-year. However, the isolated signs of recovery discernible in the 1st quarter 2009/2010 strengthened in the 2nd quarter.
The earnings situation improved in the 1st half, thanks to higher demand, increased productivity and in particular realized cost savings. Following a pre-tax loss in the prior-year period ThyssenKrupp achieved earnings before taxes (EBT) of €504 million in the 1st half 2009/2010 - an increase of €719 million from the prior-year period which was impacted by restructuring costs and impairment charges. The earnings for the current year to date include nonrecurring items of €61 million, mainly income from the sale of the Industrial Services units of the Materials Services business area. Adjusted EBT at €443 million was also considerably higher than the prior-year figure of €(42) million.
Highlights for the 1st half 2009/2010:
ThyssenKrupp continues to anticipate that sales will stabilize in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in large part to the cost-cutting programs introduced. Adjusted earnings before interest and taxes (EBIT adjusted for nonrecurring items) will probably be in the high three-digit million euro range. Adjusted earnings before taxes (EBT adjusted for nonrecurring items) are expected to be in the low three-digit million euro range. Adjusted EBT will be significantly impacted by startup losses in the Steel Americas business area in the mid three-digit million euro range.
The earnings situation improved in the 1st half, thanks to higher demand, increased productivity and in particular realized cost savings. Following a pre-tax loss in the prior-year period ThyssenKrupp achieved earnings before taxes (EBT) of €504 million in the 1st half 2009/2010 - an increase of €719 million from the prior-year period which was impacted by restructuring costs and impairment charges. The earnings for the current year to date include nonrecurring items of €61 million, mainly income from the sale of the Industrial Services units of the Materials Services business area. Adjusted EBT at €443 million was also considerably higher than the prior-year figure of €(42) million.
Highlights for the 1st half 2009/2010:
- Order intake decreased year-on-year by 4% to €19.7 billion.
- Sales fell by 9% to €19.5 billion.
- EBITDA reached €1,508 million, compared with €906 million in the prior year.
- EBIT came to €831 million, compared with €131 million in the prior year.
- Adjusted EBIT increased from €304 million in the prior year to €770 million.
- Earnings before taxes improved from €(215) million to €504 million.
- Adjusted earnings before taxes at €443 million exceeded the prior-year figure of €(42) million.
- Earnings per share increased from €(0.35) in the prior year to €0.80.
- Net financial debt at March 31, 2010 was €2,652 million, an increase of €593 million compared with September 30, 2009, when net financial debt of €2,059 million was reported. On March 31, 2009 net financial debt stood at €3,687 million.
- Order intake increased year-on-year by 36% to €10.4 billion.
- Sales climbed 3% to €10.1 billion.
- EBITDA improved by €558 million to €700 million.
- EBIT was €629 million higher at €353 million.
- Adjusted EBIT increased by €480 million to €368 million.
- Earnings before taxes improved by €646 million to €191 million.
- Adjusted earnings before taxes rose by €497 million to €206 million.
- Earnings per share increased by €1.16 to €0.45.
ThyssenKrupp continues to anticipate that sales will stabilize in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in large part to the cost-cutting programs introduced. Adjusted earnings before interest and taxes (EBIT adjusted for nonrecurring items) will probably be in the high three-digit million euro range. Adjusted earnings before taxes (EBT adjusted for nonrecurring items) are expected to be in the low three-digit million euro range. Adjusted EBT will be significantly impacted by startup losses in the Steel Americas business area in the mid three-digit million euro range.
ThyssenKrupp is an integrated materials and technology group with almost 188,000 employees in more than 80 countries developing ideas and innovations to offer solutions for sustainable progress. In the 2008/2009 fiscal year they generated sales of more than €40 billion. Eight business areas focus the Group's activities and know-how in the strategic competency areas of Materials and Technologies. In addition to manufacturing materials and plants, the Group also provides complete system solutions and innovative services. We are continuously optimizing our portfolio to sustainably increase the earning power and the value of the Company.
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