Steel company
Thyssenkrupp plans at least a billion surplus
The corporate headquarters of Thyssenkrupp in Essen. Photo: Rolf Vennenbernd / dpa
© dpa-infocom GmbH
Thyssenkrupp boss Martina Merz finally sees light in the restructuring of her company and speaks of a “recognizable trend reversal”. The company expects the highest surplus in 14 years.
The general economic recovery and progress in restructuring mean that the industrial and steel group Thyssenkrupp can look to the future with optimism.
In the current fiscal year 2021/22, the long-established company expects a net profit of at least one billion euros, as Thyssenkrupp AG announced in Essen on Thursday. This would be the highest surplus since the 2007/08 financial year. However, there are uncertainties regarding the further development of the supply bottlenecks for semiconductors and other intermediate products. This will temporarily lead to burdens in the current financial year.
In the past fiscal year 2020/21, which ended at the end of September, the adjusted operating profit (EBIT) was almost 800 million euros after a minus of almost 1.8 billion euros in the previous year, which was weak due to corona. The bottom line was a minus of 19 million euros – after 5.5 billion euros in the previous year. There should not be a dividend this time either. In 20/21 sales improved by 18 percent to 34.0 billion euros. In the current financial year it is expected to grow in the mid-single-digit percentage range.
“After a good two years of intensive transformation, we can say today: The trend reversal is recognizable, Thyssenkrupp is headed in the right direction,” said CEO Martina Merz, according to the announcement. Nevertheless, major challenges remained, particularly due to the semiconductor shortage and the uncertainties due to the corona pandemic.
Already “around 7,800 jobs cut in a socially responsible manner”
The general market recovery with increased demand resulted in increasing sales and improvements in all segments. In the case of steel, for example, the adjusted operating profit (EBIT) improved to 116 million euros after a minus of 820 million euros in the previous year.
The company also reported progress on the announced downsizing. “Of the more than 12,000 jobs announced by fiscal year 2023/2024, Thyssenkrupp has cut around 7800 jobs in a socially responsible manner in the past two fiscal years.” Many employees could have been placed in new jobs. Chief Human Resources Officer Oliver Burkhard promised that the company would continue to deal with its employees in a “responsible and decent manner”.
The restructuring of the group, which was planned to take several years, had progressed in recent months with the sale of several individual companies, among other things. Recently, there was speculation about the future of the Uhde Chlorine Engineers (UCE) joint venture, in which Thyssenkrupp holds two thirds. The technology company specializes in the construction of electrolysis systems, for example for the production of hydrogen from water with the help of renewable energies.
Thyssenkrupp said on Thursday that it sees great potential in the field of water electrolysis at UCE and wants to benefit from the strong demand for green hydrogen. One is therefore intensively examining how the hydrogen business can be further developed in the best possible way. “Thyssenkrupp is currently planning an IPO as a preferred solution.” In any case, Thyssenkrupp would keep a majority in the business, stressed the company.