Content of this page
BUSINESS SITUATION
| ThyssenKrupp in Figures |
| All figures relate to continuing operations. *before taxes |
|
|
|
|
Order intake |
million € |
|
10,856 |
|
11,555 |
Sales |
million € |
|
10,088 |
|
10,942 |
EBITDA |
million € |
|
1,000 |
|
898 |
Income* |
million € |
|
530 |
|
425 |
Employees (December 31) |
|
|
179,588 |
|
184,980 |
Order intake and sales
In the 1st quarter 2005/2006 ThyssenKrupp continued its successful performance of the previous
fiscal year. The divestment program launched in connection with the portfolio streamlining is virtually
complete. The statements below regarding order intake, sales, earnings and employees relate only to
continuing operations, unless otherwise stated.
Order intake and sales showed another improvement. Compared with the 1st quarter of the prior
year, the development of the euro against the US dollar had no impact on performance.
ThyssenKrupp reported new orders worth €11.6 billion in the 1st quarter 2005/2006. Order intake
from continuing operations was thus 6% up from the corresponding prior-year quarter. In particular
the Steel, Stainless and Elevator segments achieved high growth rates. At Services there was a slight
decrease.
Sales from continuing operations improved by 9% to €10.9 billion. The Technologies and Elevator
segments in particular reported strong increases in business. The other segments, with the exception
of Services, also achieved higher sales than a year earlier.
SALES* billion €
* from continuing operations
Income
INCOME* million €
* from continuing operations before taxes
In the 1st quarter of fiscal 2005/2006, ThyssenKrupp achieved earnings before taxes of €425 million, down €105 million from the very good prior-year quarter. Profits increased at Technologies and Steel but decreased in particular at Stainless and Automotive.
The Stainless business, included in the Steel segment in the prior year, is an independent segment as of October 01, 2005; the Steel segment now only includes carbon steel flat products. The prior-year figures have been restated. In the Special Materials business, also part of the Steel segment in the prior year, no income or expense was recognized in the reporting quarter following completion of the disposal program.
The Steel segment increased its profits despite significantly higher expense for raw materials and freight rates. Key factors were the positive performance of the market and the restructuring successes in individual product groups. In the Stainless segment, lower demand in Europe and North America combined with falling base prices resulted in a significant profit drop. Earnings in China were impacted by the introduction of additional capacities onto the market. By contrast, the nickel-base alloy business achieved a significant rise in profits. The profit decrease at Automotive was the result of lower capacity utilization, particularly in the North American plants, and higher starting material costs. The change in exchange-rate relativities against the US dollar and the Brazilian real also impacted earnings. The Technologies segment almost doubled its profits as a result of increased sales and the absence of lossmaking units. Elevator's profits were down from the prior-year quarter due to the effects of measuring exchange-rate hedges at fair value; at operating level the segment's profits were unchanged. Earnings in the Services segment were slightly down from the high prior-year level. Profits were lower from materials trading but higher from industrial services and business with technical products and raw materials.
After deducting Corporate expense and taxes, quarterly net income is €255 million. Deducting from this the minority interest in profits of €5 million, earnings per share is €0.49, compared with €0.62 in the comparative prior-year quarter. It should be noted that in the prior-year quarter €0.02 per share came from discontinued operations for which no expense or income was recognized in the reporting quarter.
Net financial liabilities and capital expenditures
NET FINANCIAL LIABILITIES million €
Net financial liabilities at December 31, 2005 stood at €315 million, €138 million higher than at September 30, 2005. The fact that this increase in the 1st quarter 2005/2006 was only small compared with the corresponding prior-year period is mainly due to the cash proceeds from the sale of treasury stock (€268 million).
Compared with December 31, 2004 the Group's net financial liabilities were €3,535 million lower, mainly due to the sale of the residential real estate business.
Capital expenditures in the 1st quarter of fiscal 2005/2006 totaled €479 million, 35% more than in the prior-year quarter. €384 million was invested in property, plant and equipment and intangible assets, with the remaining €95 million being used for the acquisition of businesses, shareholdings and other financial assets.
Employees
The number of employees fell slightly in the 1st quarter 2005/2006. ThyssenKrupp had 184,980 employees worldwide on December 31, 2005, 952 or 1% fewer than at the end of the last fiscal year. While the workforce increased at Elevator due to acquisitions and organic growth, it decreased in particular at Automotive and Technologies.
In Germany the headcount decreased by 2% to 85,600, while outside Germany it increased by 1% to 99,380. At the end of 2005, 46% of the workforce was employed in Germany, 24% in the rest of Europe and 18% in the NAFTA region.
