Capital market-relevant press releases, 2001-11-09, 01:00 AM
Key financials for fiscal year 2000/2001
Earnings before taxes around euros850 million / Financial debt reduced to euros6.5 billion / euros0.60 dividend proposed
At its routine meeting today, the Supervisory Board of ThyssenKrupp AG dealt among other things with the key financials for fiscal year 2000/2001. The financial statements will be adopted in early January. The Annual Press Conference and Analysts` Meeting will take place on January 15, 2002.
Due to the weakness of the world economy, sales at euros37.9 billion are only slightly up from the previous year (euros37.2 billion). Order intake is down to euros37.8 billion from euros38.9 billion last time. On September 30, 2001 ThyssenKrupp had around 193,900 employees worldwide, compared with 193,316 on September 30, 2000.
Before non-recurring items, 4th quarter pre-tax earnings are higher than the 3rd quarter level (euros44 million). Even after non-recurring items, in particular a deconsolidation loss of around euros60 million on the disposal of the ocean shipping activities, 4th quarter earnings are still positive. Consolidated earnings before taxes for the full year 2000/2001 are thus around euros850 million (previous year: just under euros1.1 billion). Before (positive and negative) non-recurring items the figure is around euros500 million.
Steel achieved break-even earnings in the 4th quarter. Serv posted negative earnings due to restructuring in the Information Services unit. All other segments achieved positive figures, some at an encouraging level.
EBITDA was in excess of euros3 billion (previous year: euros3.4 billion). Net financial debt was reduced by euros1.2 billion from euros7.7 billion on September 30, 2000 to euros6.5 billion on September 30, 2001. This reduction was the result of disposals and exchange rate effects.
In view of the drop in earnings, to improve the Group`s financial strength the Executive Board will be proposing to the Supervisory Board the payment of a correspondingly adjusted dividend of euros0.60 per share (previous year: euros0.75).
World economic growth has slowed appreciably, particularly in the second half of 2001. Following the September 11 terrorist attacks, the economic forecasts for 2002 are more uncertain than ever. An economic recovery cannot be expected before the latter part of next year, which means that growth in Europe and North America in 2002 is likely to be only slightly higher than this year.
Against this economic backdrop, the chances of earnings growth in fiscal year 2001/2002 are very slim. As things stand, it is unlikely that the Group will be able to achieve the 2000/2001 EBT figure of euros500 million (excluding non-recurring items). The first two quarters of the new fiscal year will probably be particularly difficult, especially for the Steel and Automotive activities. In the carbon steel sector, we expect the low point of the cycle in the winter. For this reason production will be cut further, which will also lead to short-time working. A 1st quarter loss for the Group cannot be ruled out. Performance in the subsequent quarters will depend on the scale and course of the expected economic recovery in the USA and Europe.
One of the key tasks in the new fiscal year will be to achieve further improvements in operating efficiency. To this end ThyssenKrupp has prepared a program called "ThyssenKrupp best" aimed at significantly enhancing the Group`s performance in all areas. ThyssenKrupp best stands for "business excellence in service and technology". We will be reporting on it in detail at the Annual Press Conference on January 15.
Dr. Jürgen Claassen, Corporate Communication
Telephone +49 (211) 824-36002
Fax +49 (211) 824-36005