Status: 11/18/2021 11:28 a.m.
More orders, more sales and a clear profit before taxes: Thyssenkrupp is looking up. The group looks to the future with optimism. What will become of the steel division is still open.
The situation at the industrial and steel group Thyssenkrupp has improved noticeably compared to the previous year, which was weaker due to the pandemic. From October 2020 to September 2021, the company recorded incoming orders of 39.6 billion euros: an increase of 41 percent. Sales increased by 18 percent. And the profit before taxes and interest in the past financial year was almost 800 million euros after a minus of almost 1.8 billion euros in the previous year, which was weak due to the corona.
Nevertheless, the group ended the past fiscal year with a small loss of 19 million euros – a significant improvement on the previous year, when a deficit of 5.5 billion euros was incurred. Shareholders have to wait for a dividend.
According to a corporate announcement, all segments have contributed to this current development, with in some cases significantly improved results. The materials businesses in particular benefited from rising sales volumes and prices.
CEO sees a turnaround
The general economic recovery and progress in the restructuring allow the troubled traditional group to look positively into the future. “After a good two years of intensive transformation, we can say today: the trend reversal is recognizable, things are going in the right direction at Thyssen-Krupp,” said CEO Martina Merz. However, major challenges remained, particularly due to the semiconductor shortage and the uncertainties due to the corona pandemic.
“The trend reversal is recognizable” – Thyssenkrupp CEO Martina Merz.
Image: AFP
Highest surplus since the 2007/08 financial year
Nevertheless, the group looks to the coming months with optimism. The bottom line is that Thyssenkrupp is even aiming for a net profit of at least one billion euros for the 2021/22 fiscal year that began in October – this would be the highest profit since the 2007/08 fiscal year.
Future of the steel division open
The future of the steel division is exciting for the further development of the former industrial heavyweight. With an operating profit of 116 million euros, it performed significantly better than in the previous year, when it burdened the entire group with a loss of 820 million euros. It is unclear whether and how long the last troubled and loss-making division will remain in the group. After CEO Merz had already sold the lucrative elevator division last year, a spin-off of the steel division is still an issue. However, this is a very complex undertaking. The former heart of the mining company is currently being massively rebuilt, which will also mean the reduction of 3750 jobs by 2026. More than half of the jobs have already been cut in a socially acceptable manner.
The future issue of green hydrogen
Thyssenkrupp is aiming for an IPO for its hydrogen subsidiary Uhde Chrlorine Engineers (UCE) as early as the spring of next year and wants to keep a majority in the business. Thyssenkrupp wants to benefit from the strong demand for green hydrogen.