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Capital market-relevant press releases, 2010-02-12, 07:30 AM

ThyssenKrupp in the 1st quarter 2009/2010

ThyssenKrupp generated a significant profit again in the 1st quarter of fiscal year 2009/2010. After three quarters of losses, earnings before taxes (EBT) reached €313 million – up €73 million from the prior-year figure of €240 million. The earnings figures include positive nonrecurring items of €76 million, mainly resulting from the disposal of the Industrial Services units of the Materials Services business area. Adjusted EBT at €237 million was only slightly down from the prior-year figure of €249 million. The earnings improvement was particularly marked in comparison with the 4th quarter of the prior year: Earnings before taxes, which were significantly impacted by restructuring costs and impairment charges in the prior year, improved by around €1.7 billion and adjusted EBT by around €770 million. The reasons behind the improvement in the 1st quarter were higher demand, better prices in some areas, higher productivity and continuing strict cost and capital spending controls.

Executive Board Chairman Dr. Ekkehard Schulz: “The majority of the business areas generated a profit in the first quarter. This strengthens our confidence that we will reach our earnings goal in the current fiscal year – also thanks to the rigorous implementation of our cost-reduction and restructuring programs. However, as we regard the emerging economic recovery as still fragile, we remain cautious. We therefore continue to forecast adjusted earnings before taxes in the low three-digit million euro range.”

Order intake and sales were still down year-on-year but orders improved noticeably quarter-on-quarter with a rise of around €1.8 billion to €9.3 billion. Net financial debt increased only slightly by €71 million to around €2.1 billion. Compared with December 31, 2008, net financial debt decreased by €1.4 billion.

The highlights for the 1st quarter 2009/2010:
・ Order intake dropped year-on-year by 28% to €9.3 billion.
・ Sales decreased year-on-year by 19% to €9.4 billion.
・ EBITDA in the 1st quarter was up by 6% to €808 million from €764 million in the prior year.
・ Earnings before taxes increased year-on-year from €240 million to €313 million.
・ Adjusted earnings before taxes at €237 million almost reached the prior-year figure of €249 million.
・ Earnings per share came to €0.35, compared with €0.36 in the prior year.
・ Net financial debt at December 31, 2009 was €2,130 million, an increase of €71 million compared with September 30, 2009, when net financial debt was €2,059 million. On December 31, 2008 net financial debt stood at €3,514 million.
The Group anticipates that sales will stabilize in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in large part to the cost-cutting programs introduced. Adjusted earnings before interest and taxes (EBIT excluding nonrecurring items) will probably be in the high three-digit million euro range. Adjusted earnings before taxes (EBT excluding nonrecurring items) are expected to be in the low 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. Most of these startup losses are expected in the second half of the fiscal year.

Schulz: “Our aim is to return the Group to its profitable growth course and create more value consistently as soon as the economic situation allows. Our medium-term goal is to achieve sales of €50 – 60 billion, corresponding to earnings before taxes of over €4 billion. We have shown in the past that we can reach these levels of sales and earnings.”

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