Thyssenkruppp Steel Europe saw orders and sales drop in its third fiscal quarter through June, affected by a challenging environment that included high energy costs and growing import pressure in Europe.
Order intake amounted to €2.7 billion ($3 billion) and revenue to €2.8 billion. Each fell by around half a billion euros in comparison to the corresponding previous-year quarter. This was due both to significantly lower prices and decreased volumes, especially in the automotive sector. Adjusted Ebit in the segment was €100 million, which was almost half the prior-year level of €190m.
The distribution unit of thyssenkrupp group, thyssenkrupp Materials Services, fared slightly better, Kallanish heard during a conference call with chief financial officer Jens Schulte. Orders in this division amounted to €3.1 billion and revenue to €3.2 billion, following year-on-year declines respectively by €200m and €100m, due to lower prices, especially for finished steel.
The segment nevertheless increased adjusted Ebit to €58m versus €50m a year earlier. The international supply chain and direct-to-customer businesses, as well as the North American distribution units and service centres contributed most to this growth.
At both divisions, positive earnings effects came from the efficiency measures bundled in the APEX programme, such as the negotiation of new prices, the reduction of freight costs and other site consolidation activities.
Including its other divisions – Decarbon Technologies, Automotive Technology, Marine Systems – thyssenkrupp AG’s consolidated revenue amounted to €9 billion, down from €9.6 billion a year earlier. Order intake fell from €9.4 billion to €8.4 billion. Adjusted Ebit came to €149m versus €243m last year.
Christian Koehl Germany
