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BUSINESS SITUATION
| ThyssenKrupp in Figures |
| All figures relate to continuing operations. *before taxes |
|
|
|
|
|
|
Order intake |
million € |
|
11,180 |
|
12,776 |
|
22,036 |
|
24,331 |
Sales |
million € |
|
10,610 |
|
11,786 |
|
20,698 |
|
22,728 |
EBITDA |
million € |
|
963 |
|
1,278 |
|
1,963 |
|
2,176 |
Income* |
million € |
|
448 |
|
773 |
|
978 |
|
1,198 |
Employees (March 31) |
|
|
186,930 |
|
187,997 |
|
186,930 |
|
187,997 |
Order intake and sales
Following the good start in the 1st quarter, ThyssenKrupp continued its successful performance in the
2nd quarter 2005/2006. Order intake and sales showed pleasing growth. The movement of the euro
against important currencies had a positive impact.
Order intake from continuing operations increased by 14% to €12.8 billion. Sales from continuing
operations climbed by 11% to €11.8 billion. The Steel and Stainless segments profited from increased
demand on the international steel markets and higher prices. Automotive held its own in a difficult
market environment. Technologies achieved a high volume of business. Elevator grew in both the
service and new installation businesses. At Services, too, business improved markedly as a result of
increasing demand.
SALES* billion €
* from continuing operations
Income
INCOME* million €
* from continuing operations before taxes
In the 2nd quarter 2005/2006 ThyssenKrupp achieved earnings before taxes of €773 million, an
increase of €325 million and the highest quarterly profit since the merger of Thyssen and Krupp in 1999.
The quarterly earnings include one-time income of €142 million net of transaction costs related to the
receipt of the break fee in connection with the non-implemented purchase of the Canadian steel company
Dofasco, and one-time impairment charges of €49 million in the Automotive segment. Excluding these
major nonrecurring effects, earnings before taxes reached €680 million. The Steel and Technologies
segments in particular recorded outstanding profit increases. Steel generated well over half of total Group
earnings.
The Steel segment achieved its profit increase on the back of continuing high demand and rising
prices, which more than offset significant cost increases for raw materials and freight. Stainless failed
to match its prior-year profits as base prices for stainless steels in the 2nd quarter were well below the
level of the corresponding prior-year quarter. The stainless market in China remains characterized by
overcapacities; this resulted in losses at the Chinese operation. Automotive recorded an impairment loss
at the Kitchener stamping plant in Canada. Excluding this one-time effect, Automotive’s earnings were
roughly level with the prior year. Technologies increased its profit due to high capacity utilization and good
order earnings at Plant Technology and Marine Systems as well as continuing high demand for Mechanical
Engineering’s products. The absence of charges related to since-sold loss-making businesses also
had a positive impact. Despite continuing competitive pressure Elevator achieved a significant profit rise;
particularly in North America increased demand for new installations led to significantly higher earnings.
The profit increase in the Services segment was due above all to successes in scaffold services in North
America.
After taking into account Corporate and tax expense, net income for the period is €441 million.
Deducting from this the minority interest in profits of €12 million, earnings per share is €0.84, compared
with €2.13 in the comparative prior-year quarter. It should be noted that in the prior-year quarter €1.63
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 March 31, 2006 stood at €191 million. They thus changed only slightly
even though liquidity was impacted by the dividend payment in January 2006 in the amount of
€412 million.
Compared with March 31, 2005 the Group’s net financial liabilities were €1,784 million lower.
Capital expenditures in the 2nd quarter 2005/2006 totaled €492 million, 15% less than in the
prior-year quarter. €362 million was invested in property, plant and equipment and intangible assets,
with the remaining €130 million being used for the acquisition of businesses, shareholdings and other
financial assets.
Employees
The number of employees has increased in the current fiscal year. On March 31, 2006 ThyssenKrupp
had 187,997 employees worldwide, 2,065 or 1% more than at the end of the last fiscal year. The
workforce increased in the Services and Elevator segments as a result of acquisitions, and decreased
in the other segments.
In Germany, the headcount decreased by 4% to 84,117, while outside Germany it increased by 5% to
103,880. At the end of March 2006, 45% of the workforce was employed in Germany, 23% in the rest of
Europe and 18% in the NAFTA region.
