Despite macroeconomic and geopolitical headwinds, thyssenkrupp was able to continue its good performance into the second quarter of the fiscal year through September 2022 (FY22).
The group’s order intake went up by over 50% year-on-year to €13.6 billion ($14.4 billion). Key drivers were higher market prices for steel achieved by its mill unit, tk Steel Europe, and distribution unit, tk Materials Services.
During the first fiscal half-year – six months through March 2022 – the steelmaking unit lifted revenue by 46% on-year to €6.06 billion, despite a drop in tonnages. Pre-tax profit (Ebit) saw a massive turnaround from a loss of €137 million a year earlier to a plus of €607m.
March-quarter volumes declined to 2.6 million tonnes as a result of lower call-offs from almost all customer sectors, especially automotive, although this was partly offset by increased supplies to industrial customers, tk notes. The increase in earnings more than offset adverse factors from increasing raw materials, logistics and energy costs, and worsening supply chain problems, Kallanish understands.
Thyssenkrupp AG has thus raised its consolidated sales and earnings forecast for FY22 based on two assumptions. Firstly, the necessary fossil fuels – especially natural gas – and raw materials will continue to be available without restriction, and, secondly, their prices will remain at the levels of the March quarter. On this basis, the group predicts an increase in revenue by a double-digit figure, and an increase in Ebit from €796m to more than €2 billion.
Christian Koehl Germany