By Nathan Allen
Thyssenkrupp AG's (TKA.XE) net profit for the first quarter of its fiscal year increased almost ten-fold due to higher sales, stronger steel prices and high one-off costs in the year-earlier period, the company said Wednesday.
Net income for October-December was 78 million euros ($95.7 million), up from EUR8 million a year earlier. The quarterly profit figure includes an EUR87 million hit from the recent U.S. tax reforms, the company said.
Net sales fell 3% on year to EUR9.82 billion, Thyssenkrupp said.
The company's closely watched adjusted earnings before interest and taxes, or EBIT, climbed to EUR444 million from EUR291 million, thanks largely to higher earnings at its steel business, which benefited from a continued price recovery, Thyssenkrupp said.
In the capital goods business, both the elevator technology unit and the components technology unit reported slightly higher earnings. However, adjusted EBIT at the industrial solutions unit fell to EUR12 million from EUR42 million.
Thyssenkrupp attributed the fall to an unfavorable comparison effect, as it booked a large order in the first quarter of the previous year.
The company confirmed its fiscal-year guidance of clearly positive net income and adjusted EBIT of between EUR1.8 billion and EUR2 billion.
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