steel
Thyssenkrupp boss Merz promises profitable growth
Martina Merz, CEO of Thyssenkrupp, during the Annual General Meeting. The traditional company expects “profitable growth”. Photo: ThyssenKrupp/dpa
© dpa-infocom GmbH
After two years of intensive transformation, Thyssenkrupp expects strong growth. The largest German steel producer sees its goals as “within reach”.
Thyssenkrupp boss Martina Merz promised the owners of the industrial and steel group profitable growth at the annual general meeting.
Thyssenkrupp is still in the process of restructuring. “But our goal of playing at the top again is within reach,” said Merz on Friday. At the same time, she admitted: “We are not yet where we want to be and where we need to be. But we’re coming out of the curve.” Because of the pandemic, the shareholders’ meeting was held online for the second time. According to the company, around 3,000 people followed the event in front of screens.
Merz reiterated the announcement made in November that it would not pay a dividend again until after the current 2021/22 financial year (September 30). The company, whose roots go back to the 19th century, continues to expect an annual surplus of at least one billion euros (previous year: minus 25 million euros). Most recently, Thyssenkrupp paid a dividend of 15 cents per share after the 2017/18 fiscal year.
Merz went into detail about the future of the steel division. A spin-off of the steel business will be further examined. “We are still convinced that an independent structure will open up the best possible future prospects for steel.” Thyssenkrupp is the largest German steel producer.
Challenge “green transformation”
She described the green transformation, i.e. the conversion of production to climate neutrality, as the greatest challenge. “Government funding instruments are indispensable for it to succeed.” Without broad political support, it has so far been difficult to make “fundamental and resilient decisions” about independence.
Marc Tüngler from the German Protection Association for Securities Ownership commented on the situation of the industrial giant at the general meeting. “Thyssenkrupp is certainly not over the mountain as long as the future of the steel industry has not been clarified,” he told the German Press Agency. However, there are positive aspects. As an example, he cited the prospect of the IPO of the hydrogen electrolysis plant manufacturer Nucera, a joint venture with the Italian company De Nora.
Ingo Speich from the fund company Deka Investment expressed skepticism about the current situation. The strategy has been sharpened. However, a strict implementation is missing. “While competitors are benefiting from the rise in steel prices, Thyssenkrupp’s steel division is only a shadow of itself,” he said, according to the statement. When it comes to hydrogen, only a long-term solution is on the horizon – even though this strategically important energy source is a sustainable future for both the environment and ThyssenKrupp.