Russia's entry into the WTO begins to scare THYSSENKRUPP AG analysts

The largest German manufacturer has become Thyssenkrupp AG expects a deterioration in market conditions for its business in 2013.

Analysts of the metallurgical company are concerned about the slowdown in the growth of demand in the world's steel markets and claim that the consumption of metal rolling from the automotive industry will be significantly reduced this year.

According to the financial reports published this week, in 2012 the income of Thyssenkrupp AG amounted to about 40 billion euros, while the consolidated profit of the five divisions of the company fell to 1 billion euros compared to 1 billion 400 million euros in 2011, or 40%.

The European division causes a particular alarm in Thyssenkrupp, which until now provides more than 30% of the income of the entire group. It is in the eurozone that the most serious economic shocks are expected in 2013, especially considering the accession of Russia to the WTO, the Thyssenkrupp AG said.

The company's analysts recommend to shareholders and the leadership of the group to adjust their plans for a shorter time for some divisions, and continue the strategy to strengthen the steel division in Europe.

As it became known, the Moodys Investors International Rating Agency revised the corporate rating and the probability rating of the Thyssenkrupp AG default to “VA1” VAA3, and the rating forecast remains negative.

"The deterioration of the rating reflects the difficult for many THYSSENKRUPP departments market conditions, which, according to Moody’s, will lead to a decrease in profit in 2013 compared to last year, as well as an increase in borrowed funds against the background of the stael americas losses," the Moody es press release said.