* Thyssenkrupp expects 4-6% mid-term margin
* Restructure halfway complete, CEO expects completion by
* Future of marine, cement, chemical divisions being mulled
BERLIN, Dec 2 (Reuters) - Thyssenkrupp's radical
restructuring involving a string of disposals and cost cuts is
about halfway complete, with the group on track for higher sales
and margins in coming years, its leadership team said on
Thursday on its Capital Markets Day.
The sprawling conglomerate began stripping off division
after division in 2020, including a sale of its profitable
elevator business https://www.reuters.com/article/us-thyssenkrupp-m-a-privateequity-idUSKCN20L2O0
for 17.2 billion euros ($19.50 billion), in an attempt to bring
down roughly the same sum's worth of debt and crippling pension
The current restructuring program should be completed by
2024 at the latest, CEO Martina Merz said, adding: "the earlier
The German steel-to-submarines group expects mid-term
adjusted margins of 4-6% and aims to restore its ability to
consistently pay a dividend, it said in a statement ahead of
presentations. The group had reported an adjusted margin of 2.3%
in the full year 2020/21.
"We are relentlessly pushing forward the full transformation
to the group," Merz said, adding the sale of the elevator
division was a difficult but necessary step. "The focus now is
preparing the next package of divestments."
Thyssenkrupp's two-year overhaul has so far included the
sale of its mining technology business to Denmark's FLSmidth
in July and the disposal of its infrastructure and
carbon components operation.
These transactions should bring in a
high-triple-digit-million euro figure to bolster the company's
net financial position and pension liabilities, Thyssenkrupp
Next in line are the marine systems division, which could
see partnerships, consolidation or a standalone scenario, and
the cement plant construction and chemicals divisions, whose
future the company will be deciding on soon.
More details about the initial public offering of its
hydrogen division Uhde Chlorine Engineers planned early next
will be announced at a capital markets day on Jan. 13.
Italy's De Nora <IPO-DENR.MI>, which owns 33% of the
hydrogen division, is on board with the listing, Chief Financial
Officer Klaus Keysberg said.
Higher material prices and expanding margins in both
materials and steel should fuel higher sales and earnings in the
first quarter of next year, Keysberg said.
The group reported sales of 7.3 billion euros and EBIT of 78
million euros in the first quarter of 2020/21.
Adjusted medium-term EBIT margin targets by division
included at least 10% for industrial components and 7-8% for
automotive, where 80% of sales were being generated from
components not used in combustion engines.
($1 = 0.8822 euros)
(Reporting by Victoria Waldersee, Tom Kaeckenhoff, Editing by
Zuzanna Szymanska and Bernadette Baum)