Press release, May 11, 2007 - 07:22 AM (CEST)
ThyssenKrupp in the 1st half 2006/2007
1st half earnings up by a third to €1.6 billion despite EU fine / Earnings target for fiscal 2006/2007 raised to around €3.5 billion / Medium-term target increased to €4 billion on sales of around €60 billion / Long-term earnings target €4.5 to 5.0 billion
ThyssenKrupp maintained its successful performance in the 2nd quarter 2006/2007. In a continuing favorable operating environment, order intake and sales showed pleasing growth rates. Without the exceptional charge from the EU fine of around €480 million, the Group’s earnings would have reached €1,052 million (prior year €773 million). After this charge, income was €572 million. Pre-tax earnings in the 1st half were €1.6 billion, compared with €1.2 billion in the prior-year period. ThyssenKrupp expects its positive performance to continue in the further course of fiscal 2006/2007. Executive Board Chairman Dr. Ekkehard Schulz: “Based on the very good results in the first two quarters and improved growth prospects, we now expect to increase sales to around €50 billion and generate earnings before taxes and major nonrecurring effects of around €3.5 billion.”
The main highlights are:
- Order intake increased by 9% from the prior-year quarter to €14.0 billion, and in the 1st half by 12% from €24.3 billion to €27.3 billion.
- Sales rose by 11% to €13.1 billion, and in the 1st half by 12% from €22.7 billion to €25.4 billion.
- EBITDA was €1,031 million, compared with €1,278 million a year earlier; excluding the nonrecurring charge of the EU fine EBITDA in the reporting quarter would have been €1,511 million. In the 1st half EBITDA was €2,538 million, compared with €2,176 million in the first six months of the previous fiscal year, an increase of 17% despite the EU fine.
- Earnings before taxes reached €572 million compared with €773 million in the prior-year quarter; excluding the EU fine, earnings before taxes improved by €279 million to €1,052 million. Despite the EU fine, earnings before taxes in the 1st half reached €1.6 billion compared with €1.2 billion in the prior-year period, an increase of around a third.
- Earnings per share decreased from €0.84 in the prior-year quarter to €0.45, but improved in the 1st half from €1.33 to €1.76, an increase of 32% despite the EU fine.
- Net financial liabilities at March 31, 2007 were €897 million. This represents an increase of €1,644 million compared with September 30, 2006, when net financial receivables of €747 million were reported. On March 31, 2006 net financial liabilities stood at €191 million.
As a result of the significantly increased earnings strength of the Group as well as anticipated earnings effects from the investment program, the Executive Board has raised its mid-term target up to 2010. Schulz: “Our aim is to achieve sustainable earnings before taxes and major nonrecurring effects of €4 billion on sales of around €60 billion. In the longer term, particularly after the completion of our major investment projects in North America, we expect sales in the region of €65 billion and earnings before taxes and major nonrecurring effects of €4.5 to 5.0 billion.”
Online and downloadable versions of the full interim report are available in German and English at http://www.thyssenkrupp.com.
With sales of 47.1 billion euros and 188,000 employees in over 70 countries, ThyssenKrupp is one of the world's major technology groups and occupies excellent positions on the international markets. The three main business areas of steel, capital goods and services, organized in five segments - Steel, Stainless, Technologies, Elevator and Services - mark out the Group's areas of competence.
Contact:
Dr. Jürgen Claassen
Communications and Strategy
ThyssenKrupp AG
Phone: +49 (211) 824-36002
Fax: +49 (211) 824-36005
E-mail: press@thyssenkrupp.com
Internet: www.thyssenkrupp.com
Published on May 11, 2007 - 07:22 AM (CEST)
