Ad Hoc Releases Mar 14, 2000 1:00 AM
1998/99 fiscal year, ThyssenKrupp Group Income before taxes of 624 million euros. Dividend of DM1.40 per share proposed
A weak economic environment in numerous European, Asian and Latin American countries left its mark on many sectors and regions of significance to ThyssenKrupp and affected the Group´s earnings in its first fiscal year. The second half of the year showed a great improvement over the first. Encouraging results were achieved in key segments, and despite the weak economic environment, the Steel segment was profitable.
ThyssenKrupp received orders worth 29.4 billion euros in 1998/99. Group sales in the period totaled 29.8 billion euros.
In its first fiscal year ThyssenKrupp achieved consolidated income before income taxes and minority interest of 624 million euros. EBITDA (earnings before interest, taxes, depreciation and amortization) was 2,4 billion euros. There were charges of 153 million euros in merger related costs under US GAAP.
Net income for the year (income after income taxes and minority interest) is 267 million euros. The tax expense of 316 million euros includes the one-time effects of the Tax Relief Act (Steuerentlastungsgesetz) 1999/2000/2002 in the amount of 61 million euros.
The Executive Board proposes the payment of a dividend of DM1.40 or 0.71581 euros. For tax reasons the dividend payment will carry no tax credit.
On September 30, 1999 ThyssenKrupp had 184,770 employees worldwide (September 30, 1998: 183,937 employees).
For its first fiscal year 1998/99 ThyssenKrupp has switched its accounting to US GAAP and thus brought it in line with the highest international standards. Under US GAAP rules the merger has to be accounted for as if Krupp had been acquired by Thyssen. The initial consolidation date is the effective date of acquisition, i.e. December 4, 1998. Therefore, only for 10 months of Krupp operations results are included in the US GAAP figures. The prior year figures to US GAAP would have to be calculated for Thyssen on a stand-alone basis. Due to the lack of comparability, we deliberately decided not to publish them.
For this reason, we have calculated the main key figures on a pro forma basis (i.e. including 12-month figures for the former Krupp companies) - both for the 1998/99 fiscal year and for the reference year 1997/98. The pro forma earnings figures for fiscal 1998/99 do not differ significantly from the earnings figures given in the legal financial statements.
The consolidated financial statements for the year ended September 30, 1999 will be explained together with the pro forma figures at the Annual Press Conference and the Analysts´ Meeting on April 3, 2000.