Thyssenkrupp Raises Outlook as Recovery Boosts Demand, Prices
By Christoph Steitz and Tom Käckenhoff
The group now expects adjusted earnings before interest and tax (EBIT) to reach a mid triple-digit million euro amount in the year to September, having previously forecast to almost break even.
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Thyssenkrupp swung to an adjusted EBIT of 220 million euros ($267 million) in the second quarter, compared with a 279 million loss last year, helped by higher prices for its products, that have also supported other sectors across Europe.
Shares were indicated 1% higher in pre-market trade.
The submarines-to-bearings maker is emerging from years of crisis during which it lost two CEOs, warned on profits numerous times and sold its elevators division – its crown jewel – to private equity.
“But we also know that we still have a lot of work to do. So we’re not sitting back. The realignment of Thyssenkrupp remains a journey of many small steps – and we’re taking those steps,” Chief Executive Martina Merz said.
The group’s steel division, Europe’s second-largest after ArcelorMittal, swung to adjusted earnings before interest and tax of 47 million euros, compared with a 181 million euro loss in the same period last year.
Thyssenkrupp is considering spinning off the division after several attempts to merge or sell it, including to Britain’s Liberty Steel, have failed.
($1 = 0.8235 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Riham Alkousaa, Maria Sheahan and Kim Coghill)