FRANKFURT (AFP) – German industrial giant Thyssenkrupp said yesterday it was targeting the upper range of its full-year forecasts after a “robust” quarter, even as lower prices hurt its steel division.
Thyssenkrupp, which runs its business year from October to September, said it now expected adjusted pre-tax earnings (EBIT) “in the high three-digit million euro range”. It had previously eyed a mid to high range.
The steel-to-submarines group said it notably expected to reap the benefits from the listing of its hydrogen unit Nucera in July.
Thyssenkrupp said it would receive proceeds of around EUR526 million (USD579 million) from the listing, which will be used to expand its green hydrogen production.
The group also welcomed European Union approval for EUR2 billion in German state aid for its Steel Europe unit.
Between April and June, Thyssenkrupp said it booked a net profit of EUR83 million, a 10-per cent increase year-on-year.
Revenues however fell by 12 per cent to EUR9.6 billion, which Thyssenkrupp blamed mainly on lower prices that dragged down sales at its materials services and steel divisions.
Steel Europe revenues fell by nine per cent to EUR3.3 billion as a result, Thyssenkrupp said, even as orders climbed by four per cent on the back of strong demand from the automotive industry.
Despite a “challenging” environment, Thyssenkrupp “continued its robust business performance in the third quarter”, said Chief Executive Officer Miguel Lopez.
The company was making “significant progress” in its ongoing restructuring programme, he added, which involves a major cost-cutting drive.
As part of the overhaul, Thyssenkrupp is still looking for a “spin-off solution” for its steel business, which will require huge investments in the coming years as the industry looks for ways to decarbonise.
Thyssenkrupp also plans to spin off its marine systems unit, which builds submarines and naval vessels.