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Ad Hoc Releases, 1999-05-27, 02:00 AM

The ThyssenKrupp Group in the 1st half 1998/99

Economic headwind in first fiscal year

Decline in orders and sales / appropriate dividend secured

The start to Thyssen Krupp AG`s first fiscal year was hampered by the increasing economic headwind. A temporary fall in demand for steel and in the materials business resulted in a year-on-year drop in 1st half sales of 6.1% to DM30.8 billion. The other Group activities reported orders more or less at the same level as a year earlier. Order intake in the 1st half reached DM30.7 billion, a drop of 10% from the prior year.

Appropriate dividend secured

In the first half of 1998/99 the Group`s income before taxes amounted to DM523 million. All business segments contributed to this result with the exception of Thyssen Krupp Engineering which posted a small loss for invoice timing reasons. Full-year earnings will allow the payment of an appropriate dividend. Whether and to what extent this will be linked to a tax credit is not yet clear.

Outlook

A gradual recovery of the overall economic environment is expected in the upcoming months. Most of the crisis-hit countries in Asia have survived the worst of their difficulties and there are signs of improvement in Latin America, too. This and the continued robust activity in the USA increases the prospects of a slight recovery in Western Europe. In the markets important to ThyssenKrupp the positive signals predominate. On the basis of this market assessment, sales of the ThyssenKrupp Group in the 2nd half of 1998/99 are expected to be higher than in the 1st half. A key factor will be the expected recovery in Steel and Materials. Reflecting this, a clear increase in Group earnings is expected in the 2nd half of the year.

million DM
Order intake
1997/1998: 34,117
1998/1999: 30,722
Sales
1997/1998: 32,804
1998/1999: 30,787
Income before taxes
1997/1998: 1,312
1998/1999: 523
Employees (Sept. 30, 98 and March 31, 99)
1997/1998: 174,262
1998/1999: 178,724

Order intake

Steel
1997/1998: 12,101
1998/1999: 9,892
Automotive
1997/1998: 4,949
1998/1999: 4,882
Industries
1997/1998: 6,032
1998/1999: 6,043
Engineering
1997/1998: 1,896
1998/1999: 1,796
Materials & Services
1997/1998: 10,891
1998/1999: 9,640
Other Group Companies
1997/1998: 477
1998/1999: 444
Total
1997/1998: 36,346
1998/1999: 32,697
less intersegment business
1997/1998: (2,229) 34,117
1998/1999: (1,975) 30,722

Employees

Steel
1997/1998 12,055
1998/1999 9,998
Automotive
1997/1998 4,953
1998/1999 5,008
Industries
1997/1998 5,014
1998/1999 5,817
Engineering
1997/1998 1,502
1998/1999 1,59
Materials & Services
1997/1998 10,85
1998/1999 9,785
Other Group Companies
1997/1998 477
1998/1999 444
Total
1997/1998 34,851
1998/1999 32,642
less intersegment business
1997/1998 (2,047) 32,804
1998/1999 (1,855) 30,787

For further information please contact Mr. Klaus Pepperhoff (telephone +49 211 824-36007). The full interim report can be ordered from Thyssen Krupp AG, August-Thyssen-Strasse 1, 40211 Düsseldorf, Germany (telephone: +49 211 824-36017, fax: +49 211 824-36037) or downloaded from our website at http://www.thyssenkrupp.com

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