Capital market-relevant press releases, 2006-10-16, 05:34 PM
Concentration on core businesses continued
As previously announced, the automotive supply operations of ThyssenKrupp are being realigned. The Automotive and Technologies segments were combined effective October 1, 2006. ThyssenKrupp Technologies comprises the business units Plant Technology, Marine Systems, Mechanical Components and Automotive Solutions and generates sales of approximately EUR13 billion. ThyssenKrupp Automotive AG is being merged into ThyssenKrupp Technologies AG with head office in Essen. The merger has already been approved by the responsible supervisory boards.
The reason for the realignment are the well-known restructuring requirements of the body and chassis business especially in North America. The automotive supply operations are being focused on sustainable and profitable core businesses.
As part of the realignment/restructuring, ThyssenKrupp Budd has sold its North American body and chassis operations with revenues of approximately EUR1 billion and approximately 3,500 employees to Martinrea International Inc., Ontario, Canada on October 16, 2006. The sale will be consummated at the end of this year. The transaction volume is US$275 million, comprising a cash amount of approximately US$95 million plus assumed liabilities. Martinrea is an automotive supplier with approximately 3,400 employees, revenues of US$630 million and facilities in the USA, Canada, Mexico and Europe. The company is listed on the Toronto stock exchange under the symbol "MRE". The main sites of the sold automotive operations, which today belong to ThyssenKrupp Budd, are Shelbyville (Kentucky, USA), Hopkinsville (Kentucky, USA), Kitchener and Windsor (Ontario, Canada) and Hermosillo (Mexico). The sale is subject to the approval of the responsible supervisory bodies.
Once the sale of the body and chassis operations has been consummated, ThyssenKrupp's North American automotive supply business will have revenues of around EUR2 billion and 7,000 employees. In addition to the foundry activities of ThyssenKrupp Waupaca, the product range includes steering systems, shock absorbers, springs, camshafts, crankshafts and toolmaking activities. The largest operation is the ThyssenKrupp Waupaca foundry with sales of roughly EUR1 billion and just under 4,000 employees.
With the combination of the Technologies and Automotive segments, the ThyssenKrupp Group now comprises the five segments Steel, Stainless, Technologies, Elevator and Services. Since the merger, ThyssenKrupp has disposed of companies with sales of EUR8.5 billion and acquired others with sales of EUR7.8 billion. For the past fiscal year 2005/2006, ThyssenKrupp will achieve earnings of EUR2.5 billion on sales of EUR46 billion. The company is aiming to achieve a comparable magnitude in the fiscal year 2006/2007 which commenced on October 1. Executive Board Chairman Dr. Ekkehard Schulz: "Assuming that the world economy remains stable and oil prices stay within manageable limits, we are confident that we can achieve this target."