ThyssenKrupp Raises Full Yearly Sales Forecast

The German steel giant has released a performance update for 2014. Heinrich Hisinger, CEO of the company, said: “We have achieved positive net income for the first time in seven quarters. This shows that our performance program is working and our changes in operations have resulted in stronger performance. ”

Three main factors of improvement have emerged: 1) Increased efficiency; 2) Strong growth in the capital goods business; 3) liquidation of losses, as well as income from the sale of assets and restructuring.

In the first half of the year, sales grew up to 4 percent compared to the previous year, despite the negative impact of foreign exchange rates. On a comparable basis, that is, excluding exchange rates, consumption increased by about 6 percent. Income from continuing operations is aiming for € 20.9 billion.

Sales from continuing operations in the prior months of this year were higher year-on-year across all business lines, with the exception of Steel Europe, where sales declined due to capacity retirements. On a comparable basis, sales were up 7 percent YoY and 9 percent YoY.

Adjusted EBIT from continuing operations increased significantly year on year to € 555 million in 1H and € 309 million in 2Q. The Group's net financial debt as at 31 March 2014 was reduced to 4 billion euros, which is significantly less than a year earlier at 5.3 billion euros and at the reporting date of 30 September 2013 at 5 billion euros.