German conglomerate thyssenkrupp saw third-fiscal-quarter revenue rise but orders drop at some of its divisions, but is satisfied with the performance of its steel activities.
Group sales in the reporting quarter – April through June – increased to €8.8 billion ($10.1 billion), from €8.2 billion in the prior-year quarter. The steel distribution division, tk Materials Services, benefited from higher volumes and increased prices, while steelmaking division tk Steel Europe also recorded an increase in sales. Sales at tk Marine Systems increased, but were below the prior-year level at tk Automotive Technology and tk Decarbon Technologies.
Order intake amounted to €7.7 billion, down from €10.1 billion year-on-year. That exceptionally high figure reflected the order extension at tk Marine Systems of two further submarines for Southeast Asia and the conclusion of a major service order for the German Navy.
Net income was €34 million, after a loss of €255m in the prior-year quarter. The turnaround was mainly due to a positive accounting effect of €131m in connection with the sale of the stake in Hüttenwerke Krupp Mannesmann (HKM).
At tk Materials Services – which has now been renamed to tk accelis – order intake rose 20% to €3.3 billion and revenue by 18% to €3.4 billion. The group highlights a particularly strong growth contribution from the North American activities. The international trading business also developed positively, and higher prices and volumes in key product groups had a positive impact, Kallanish hears. Shipments of materials and raw materials increased to 2.1 million tonnes year-on-year, from 1.7mt.
At tk Steel Europe, order intake rose by 9% to €3.3 billion and revenue by 5% to €3.5 billion. In this segment, sales prices were down on the prior year in almost all areas, tk notes. Individual product segments were impacted by adverse market trends. A significant decrease was seen for tinplate, due to mainly restrictive US trade policy, and for electrical steel, due to imports to the EU from third countries.
The group did not provide tk Steel Europe production or shipment tonnages.
