Distribution business boosts thyssenkrupp’s profits

thyssenkrupp recorded an order intake of €8.8 billion ($10.3 billion) in its third fiscal quarter – almost double the figure for the prior-year period of €4.8 billion. Revenue increased by 51% to €8.7 billion.

The adjusted Ebit amounted to €266 million, up significantly from the prior-year loss of €693 million and also from the prior quarter that still saw a loss of €220m. Almost all segments of the conglomerate contributed to this performance. In particular, its distribution unit Materials Services posted record earnings, Kallanish hears.

Here, the continuing strong rise in material prices and the tangible recovery in warehousing and distribution resulted in a substantial increase in order intake by €1.6 billion and sales by €1.4 billion, to €3.6 billion and €3.3 billion, respectively. Adjusted Ebit also reached a new record of €232m, a significant increase on the prior-year loss of €75m. This is attributable, on the one hand, to the increased prices for steel caused by the materials shortage and, on the other hand, to the effects innovations and optimisation, it notes.

The steelmaking unit, Steel Europe, increased order intake by €1.6 billion to €2.5 billion, and revenue by €1 billion to €2.4 billion. With significantly higher selling prices, business grew strongly, especially in the automotive and component supply industries. Orders from industrial customers and steel service centres also rose significantly. Ebit here came to €55m, after a loss €317m last year. The figure is smaller than that achieved with distribution, as the effects from the unit with its mainly long-term contracts will come with a delay (see related story).

Christian Koehl Germany