The operating profit should be between 1.5 and 1.8 billion euros for the year as a whole.
(Photo: dpa)
meal The steel boom inspires Thyssen-Krupp. In the first quarter of its 2021/22 financial year, the group increased its adjusted earnings before interest and taxes (EBIT) to EUR 378 million from EUR 78 million previously thanks to higher material and steel prices. However, delivery bottlenecks and higher raw material, energy and transport costs are causing headwinds.
Thyssen-Krupp confirmed its annual targets on Thursday, according to which operating profit should climb to between EUR 1.5 billion and EUR 1.8 billion from the last EUR 796 million. “Our next major milestone is a balanced cash flow,” emphasized CFO Klaus Keysberg.
“We had a good first quarter,” Keysberg said. “But we’re not where we want to be yet.” Free cash flow before M&A was minus 858 million euros after the first quarter, after a plus of 32 million euros in the same period last year.
“The preparation for stronger demand in the following quarters and ongoing bottlenecks in the supply chain with the resulting delayed customer calls, especially from automotive customers, have led to a temporary increase in current assets,” it said.
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The steel division, which CEO Martina Merz wants to make independent, was faced with supply bottlenecks. However, thanks to higher prices, Steel Europe was able to increase its operating profit in the quarter to 124 million euros from the previous 20 million euros.
The Industrial Components and Automotive Technology divisions ended the operating year worse than in the same period of the previous year. In the car parts business, persistent bottlenecks in the supply of electronic semiconductors and other preliminary products had an impact.
More: This is how Thyssen-Krupp fights its way out of the crisis – the strengths and weaknesses in the balance sheet check