Thyssenkrupp reports weak results

In a challenging economic environment, Thyssenkrupp sales were almost stable at € 9.7 billion in the first three months of the current fiscal year 2019/2020. While capital goods factories have achieved double-digit growth in some cases, material production has clearly been affected by losses in price and volume. This was also reflected in order receipts, which were overall 4 percent lower at € 9.7 billion. Adjusted EBIT was € 50 million and was, as expected, down from the previous year (€ 217 million), especially due to the situation in Steel Europe and the general weakening of the automotive market.

Ms Martina Merz, CEO of thyssenkrupp AG, said: “The latest figures are not great. But we are convinced that we are on the right track. The decision to deal with the Elevator Division is imminent, negotiations with Codetermination on Steel's strategy are progressing and we are increasing our productivity. Bottom line: we are moving in the right direction. "

Thyssenkrupp maintains its outlook for the current fiscal year 2019/2020. The Executive Board expects adjusted EBIT to be in line with the prior year (prior year € 802 million) on the back of progress in capital goods manufacturing, a general decline in revenues from the materials sector and already undergoing enhanced restructuring measures.

Free cash flow before M&A is expected to be lower compared to the same period last year (previous year (€ 1,140) million). The costs of strengthening restructuring measures (special items in the middle of the three-digit € million range) are expected to result in a significant increase in net loss for the year over the previous year (€ 260 million).