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Capital market-relevant press releases, 2010-08-13, 07:30 AM

ThyssenKrupp in the first 9 months 2009/2010


ThyssenKrupp’s performance has improved noticeably in fiscal 2009/2010: Order intake and sales increased quarter by quarter and in the first 9 months of 2009/2010 were up from the prior-year period. The earnings situation also improved. A profit was generated in all three quarters, with the past quarter’s result the best for seven quarters. Altogether ThyssenKrupp achieved earnings before taxes of €918 million in the first 9 months 2009/2010 – an increase of €1,905 million from the pre-tax loss of €987 million in the prior-year period. Adjusted EBT at €923 million was also considerably higher than the prior-year figure of €(506) million.

Dr. Ekkehard Schulz, Chairman of the Executive Board of ThyssenKrupp AG: “Demand has improved significantly in our key customer sectors and core markets. But with the economic environment remaining volatile, we will continue systematically with our chosen course of continuous structural optimization. Based on the positive business trend in the first 9 months of the fiscal year our outlook for full-year sales and earnings has improved.”

We expect a slight increase in sales in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in part to the cost reduction programs we have initiated. Adjusted earnings before interest and taxes (excluding nonrecurring items) will probably exceed one billion euros. Adjusted earnings before taxes (excluding nonrecurring items) are expected to be in the mid to higher three-digit million euro range. Adjusted EBT will be significantly impacted by startup losses in the Steel Americas business area in the mid three-digit million euro range.

Dr. Ekkehard Schulz, Chairman of the Executive Board of ThyssenKrupp AG: “We have successfully started up the first key units at our new plants in North and South America: Blast furnace 1 in Brazil was fired up in mid July and the hot strip mill in Alabama produced its first coil at the end of July. We are pleased that even in this early phase of the ramp-up our new facilities are meeting with strong demand from our customers in the NAFTA region.”

The highlights for the first 9 months 2009/2010:
・ Compared with the first 9 months of the previous fiscal year, order intake increased by 8% to €30.6 billion.

・ Sales were 1% higher at €31.1 billion.

・ EBITDA improved to €2,443 million from €726 million in the prior year.

・ EBIT came to €1,418 million, compared with €(466) million in the prior year.

・ Adjusted EBIT increased from €15 million in the prior year to €1,423 million.

・ EBT at €918 million exceeded the prior-year figure of €(987) million.

・ Adjusted EBT amounted to €923 million, compared with €(506) million in the prior year.

・ Earnings per share improved year-on-year from €(1.73) to €1.38.

・ Net financial debt at June 30, 2010 was €3,753 million, an increase of €1,694 million compared with September 30, 2009, when we reported net financial debt of €2,059 million. Capital spending in the same period amounted to €2,460 million, of which €1,708 million alone related to the major projects in Brazil and the USA.
Highlights for the 3rd quarter:
・ 3rd-quarter order intake was up 38% from the prior-year period at €10.9 billion.

・ Sales at €11.7 billion were 26% higher than a year earlier.

・ EBITDA improved by €1.1 billion to €935 million.

・ EBIT reached €587 million, compared with €(597) million in the prior year.

・ Adjusted EBIT increased year-on-year from €(289) million to €653 million.

・ At €414 million, EBT significantly exceeded the prior-year figure of €(772) million.

・ Adjusted EBT was €480 million, compared with €(464) million a year earlier.

・ Earnings per share improved from €(1.38) to €0.58.
Our expectations for the individual business areas in the 4th fiscal quarter are as follows:
・ Steel Europe – Good capacity utilization, higher average selling prices and significantly higher raw material costs

・ Steel Americas – Negative EBT contribution due to startup losses for the steel and processing plants in Brazil and the USA

・ Stainless Global – Slipping volumes, mainly due to seasonal factors, stable end-customer business and slow demand from distributors due to nickel price

・ Materials Services – Slipping volumes, mainly due to seasonal factors, higher flat steel prices and continuing strong demand from the auto and machinery sectors

・ Elevator Technology – Continuing high earnings contributions thanks to high orders in hand and steady maintenance business

・ Plant Technology – Continuing good revenue and earnings visibility in project business due to order backlog with good earnings quality

・ Components Technology – Recovery in demand for construction equipment, mainly positive earnings from automotive suppliers and continuing positive earnings contribution from slewing bearings for the wind energy sector

・ Marine Systems – Continuing losses due to lack of work in civil shipbuilding until completion of consolidation of shipyard sites
In 2010/2011 ThyssenKrupp expects an improvement in the overall economic environment and further positive effects from its cost reduction programs. This will have a corresponding impact on sales and earnings.

German and English versions of the full interim report are available for downloading and as an online version at http://www.thyssenkrupp.com

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