Thyssenkrupp recorded net losses of 372 million euros (403.3 million
U.S. dollars) in the first quarter (Q1) of the 2019-2020 fiscal year due
to restructuring expenses, the German steel giant announced on
Thursday.Total net debt of Thyssenkrupp, which was recently pushed out
of Germany’s prime stock index DAX after more than 30 years, increased
from 3.7 billion euros to 7.1 billion euros, according to Q1
figures.Adjusted earnings before interest and taxes (EBIT) declined to
50 million euros, significantly below last year’s 217 million euros.
According to Thyssenkrupp, the development was “particularly due to the
situation at Steel Europe and a general weakening of the automotive
market.” At the same time, order intake was down 4 percent.“The latest
figures are not great. But we are convinced that we are on the right
track,” stated Martina Merz, chief executive officer of Thyssenkrupp AG,
adding that the company would make progress and had improved its
performance. The performance of Thyssenkrupp’s steel business in Europe
(Steel Europe) has been characterized by a “structurally extremely
challenging situation.” While order intake and sales were down 10
percent and 13 percent year-on-year, respectively, adjusted EBIT
collapsed to minus 164 million euros from 38 million euros last
year.Thyssenkrupp’s important elevator business registered orders worth
2.2 billion euros in Q1, which was a new record high “mainly resulting
from new installations and modernization business in the United States.”
Thyssenkrupp is seeking to sell its profitable elevator business as
part of its restructuring measures in the near future.
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