The distribution unit of thyssenkrup AG, thyssenkrupp Materials Services, saw order intake and revenue decline significantly in the fiscal year from October 2023 to September 2024, the company says in its annual report.
Lower prices in its key product groups and declining demand affected its European trading and service centre units, in particular, whereas the corresponding North American units posted smaller decreases, it says.
Due to the difficult market situation, especially in Germany, consolidated shipments decreased to 8.2 million tonnes, down 8.4% on the prior year. Order intake fell 11% to €12.1 billion ($12.8 billion).
The group notes it achieved higher earnings in its international supply chain business, which led to an increase in adjusted Ebit by 15% to €204 million. At the firm’s annual press conference in Essen on Tuesday, attended by Kallanish, executives said the Materials Services unit will expand its “Materials as a Service” approach. “We are developing from a mere materials distributor to an international supply chain manager,” observed thyssenkrupp chief executive Miguel Angel Lopez.
Tk Materials invested particularly in North American growth projects, with new service centres in Mexico and the USA, and in processing equipment in both North America and Europe to increase vertical integration.
Christian Koehl Germany
