Thyssenkrupp expects more big earnings with steel unit

Following a year of “greatly improved” fiscal figures, thyssenkrupp remains upbeat and predicts its adjusted Ebit will double year-on-year, Kallanish hears at the group’s annual results conference.

In the fiscal year from October 2020 to September 2021, the group posted an order intake totalling €39.6 billion ($44.9 billion), an increase of 41%. Revenue improved by 18% to €34 billion. Adjusted Ebit increased to €796 million, after a loss of €1,759m in 2019/20.

All segments contributed to this positive development, with substantial earnings improvements in some cases. In particular, steel distribution unit tk Materials Services profited from rising volumes and prices. As a result, thyssenkrupp achieved the upper end of the earnings forecast range that had been revised upwards in May.

Going forward, the group expects to achieve an Ebit of €1.5-1.8 billion in the current fiscal year. This figure includes a significant improvement in earnings at steelmaking unit tk Steel Europe. The unit was profitable in 20/21, but more modestly than other mill groups because of its customer structure, says chief financial officer Klaus Keysberg. “We have less spot business and more annual contracts than other competitors, and this will bring a clear advantage in revenue in the current year,” he said at the conference.

Compared with the pandemic-weakened prior year, tk Steel Europe increased order intake by 31% to €9.3 billion. Adjusted Ebit improved to €116m from a loss of €820m a year earlier.
At tk Materials Services , order intake rose by 29% to €12.7 billion. At €587m, adjusted Ebit marked a respectable turnaround from the prior-year loss of €85m.

Christian Koehl Germany