Ad Hoc Releases, 2000-08-16, 02:00 AM
ThyssenKrupp Steel September 2000 IPO canceled. Low stock market valuation despite very good business performance
ThyssenKrupp, together with the consortium lead managers Deutsche Bank and Commerzbank, has reached the conclusion that in view of the stock market’s continued weak valuation of the steel sector the flotation of ThyssenKrupp Steel planned for September 2000 should not go ahead despite the company’s excellent results. A limit has been reached which would make it impossible to achieve the goal of creating added value for the Group. The strategic advantages of the IPO for ThyssenKrupp do not justify accepting the disadvantages currently associated with it. Against this background the Executive Board of ThyssenKrupp AG has decided to cancel the IPO for September 2000.
ThyssenKrupp Steel generated pre-tax earnings of around Euro200 million in the 3rd quarter. Together with the 1st half year, ThyssenKrupp Steel thus made earnings totaling just under Euro400 million in the first 9 months. For the 4th quarter (July – September 2000) a very good profit is again expected despite the vacation period.
The ThyssenKrupp Group has succeeded in further strengthening its earning power. Income in the current fiscal year will be well above the figure for the previous year. An appropriate dividend will once again be paid out. From the present perspective a further improvement in earnings is expected in the next fiscal year.