The steel division grew – whether and how long it will remain in the group is open.
(Photo: dpa)
Essen, Düsseldorf The general economic recovery and progress in the restructuring allow the industrial and steel group Thyssen-Krupp to look to the future with optimism. In the current fiscal year 2021/22, the long-established company expects a net profit of at least one billion euros, as Thyssen-Krupp AG announced on Thursday in Essen. This would be the highest surplus since the 2007/08 financial year.
The operating profit is to be roughly doubled to 1.5 to 1.8 billion euros in the 2021/22 financial year (as of the end of September), thanks in part to better figures in the steel division. However, there are uncertainties regarding the further development of the supply bottlenecks for semiconductors and other intermediate products. This will temporarily lead to burdens in the current financial year.
In the past 2020/21 financial year, the adjusted operating profit (EBIT) was almost 800 million euros after a minus of almost 1.8 billion euros in the previous year, which was weak due to corona. The bottom line was a minus of 19 million euros – after 5.5 billion euros in the previous year. There should not be a dividend this time either. In 20/21 sales improved by 18 percent to 34.0 billion euros. In the current financial year it is expected to grow in the mid-single-digit percentage range.
“After a good two years of intensive transformation, we can say today: the trend reversal is recognizable, things are going in the right direction at Thyssen-Krupp,” said CEO Martina Merz, according to the announcement. Nevertheless, major challenges remained, particularly due to the semiconductor shortage and the uncertainties due to the corona pandemic.
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The general market recovery with increased demand resulted in increasing sales and improvements in all segments. In the case of steel, for example, the adjusted operating profit (EBIT) improved to 116 million euros after a minus of 820 million euros in the previous year.
Progress on announced downsizing
In the new year, the division is aiming for a further significant improvement in earnings. It is open whether and how long she will stay with the group. “In addition to preparing the usual carve-out topics, Thyssen-Krupp is also conducting a feasibility study to determine the conditions under which the steel division can become independent.”
The company also reported progress on the announced downsizing. “Of the more than 12,000 jobs announced by fiscal year 2023/2024, Thyssen-Krupp has cut around 7800 jobs in a socially responsible manner in the past two fiscal years.” Many employees could have been placed in new jobs. Chief Human Resources Officer Oliver Burkhard promised that the company would continue to deal “responsibly and decently” with its employees.
The restructuring of the group, which was planned to take several years, had progressed in recent months with the sale of several individual companies, among other things. Recently, there was speculation about the future of the Uhde Chlorine Engineers (UCE) joint venture, in which Thyssen-Krupp holds two thirds. The technology company specializes in the construction of electrolysis systems, for example for the production of hydrogen from water with the help of renewable energies.
Thyssen-Krupp said on Thursday that UCE sees great potential in the area of water electrolysis and wants to benefit from the strong demand for green hydrogen. One is therefore intensively examining how the hydrogen business can be further developed in the best possible way. “Thyssen-Krupp is currently planning an IPO as a preferred solution.” In any case, Thyssen-Krupp would retain a majority in the business, the company emphasized.
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