THYSSENKRUPP AG thyssenkrupp made a good start to the new fiscal year.
In the 1st quarter 2020/2021 the group of companies posted order intake[1] totaling
'In a continuing uncertain market environment, we had a good first quarter: we're noticing signs of an economic recovery and our measures to improve performance in the businesses are starting to bear fruit. We've posted positive results, but we're not out of the woods yet. Further efforts are needed to make thyssenkrupp into a powerful group of companies on a long-term basis. That's why we're continuing to press ahead with the transformation,' said
Performance of the segments in the 1st quarter 2020/2021
Materials Services made further progress in implementing its strategic transformation in the 1st quarter. Among other things, the number of logistics sites was reduced and the share of service business was expanded as part of the ongoing network optimization. Overall the segment profited from an improved cost structure and productivity increases as well as from a significant price and volume recovery. However, weak demand from the aerospace industry as well as lower stainless steel prices and changes to the product mix in direct-to-customer business had a negative impact on order intake and sales, which declined year-on-year by 10 percent and 12 percent respectively. Adjusted EBIT came to
Industrial Components increased its order intake by 19 percent and sales by 14 percent. The bearings unit continued to profit clearly from the good order situation in wind energy particularly in
Automotive Technology achieved a 3 percent year-on-year improvement in both order intake and sales. The increases resulted mainly from the automotive original equipment business, supported by the ramp-up of new plants and projects, particularly for steering systems, and stable demand in
In a structurally extremely challenging market environment, order intake and sales at Steel Europe were up 17 percent and 7 percent respectively from the prior year. After the unprecedented pandemic-related demand slump in spring and summer 2020, business is now picking up again. Restocking at steel service centers, catch-up effects mainly at automotive customers, and good demand from appliance manufacturers and the construction sector are having a positive impact. As a result of increasing capacity utilization together with an improved product mix and initial effects from the ongoing restructuring with advancing personnel reduction and the initiated performance measures, adjusted EBIT improved significantly to
Marine Systems significantly improved its order intake in the first three months of the current fiscal year to
The businesses in the Multi Tracks segment showed a very mixed picture in the 1st quarter: The stainless steel business recorded good demand, but market-related developments on the price and cost side impacted earnings. With limited declines, the plant construction business and the powertrain and battery assembly unit (System Engineering Powertrain) held up comparatively well in the market. In the heavy plate business, business was down ahead of the planned closure. Overall, order intake at Multi Tracks increased by 7 percent. By contrast, sales were significantly lower (down 17 percent), partly due to the focus on more attractive market segments and the cautious award of major new projects in the plant construction business and at System Engineering Powertrain. Adjusted EBIT totaled
thyssenkrupp continues to make good progress as planned with the reduction of general and administrative costs at Corporate Headquarters. Adjusted EBIT at Corporate Headquarters improved to
The increased adjusted EBIT and the significant reduction in the previously customary year-end measures implemented in the 4th quarter resulted in a significantly improved free cash flow before M&A of
Total equity decreased slightly from
Forecast for fiscal year 2020/2021 raised
Despite the expected recovery of important markets and the visible structural improvements to the businesses, thyssenkrupp still feels it appropriate to offer a cautious outlook overall for the 2020/2021 fiscal year. The economic and geopolitical uncertainties give the group only limited planning reliability for the cyclical materials businesses and for auto components, particularly in the second half of the current fiscal year.
Nevertheless, following the good start to the fiscal year the company has raised its full-year forecast: Depending in particular on the further progression of the coronavirus pandemic, sales will grow in the high single-digit percentage range, but will still remain well below the level prior to the pandemic (previous forecast: growth in the low to mid single-digit percentage range; prior year:
Mainly as a result of improved demand in the materials and automotive components businesses, thyssenkrupp expects a significant improvement in adjusted EBIT towards almost break-even (previously: loss in the mid three-digit million euro range; prior year: pro forma[3]
As a result of earnings improvements in all segments, free cash flow before M&A is expected to improve more strongly than assumed at the start of the fiscal year and based on current estimates move towards
Despite clear operating improvements and the absence of impairment losses on non-current assets from the prior year, thyssenkrupp expects a net loss in the high three-digit million euro range (previously: net loss over
Contact:
Tel: +49 201 844 536464
(C) 2021 Electronic News Publishing, source
