In the Steel Division, robust demand from the automotive and mechanical engineering industries ensured good capacity utilization and sufficient profit for the companies producing flat steel and plate. However, the persistent weakness in steel construction throughout Europe and constraints on public-sector investments in infrastructure still burden the section product segment which remains in deficit. Owing mainly to the higher level of selling prices compared with a year ago, the Steel Division's external sales climbed by 26% to EUR 1,367.0 million (first half of 2010: EUR 1,081.6 million), with shipments recording a slight increase. Pre-tax profit posted EUR 30.4 million, which represents a growth of more than EUR 100 million compared with the year-earlier figure (first half of 2010: EUR -76.2 million).
The Trading Division benefited from the healthy economy in the first half of 2011 and the resulting demand for steel in most customer sectors. The uptrend in steel prices, initiated at the start of the year, resulted in external sales climbing by 23% to EUR 1,737.3 million (first half of 2010: EUR 1,409.2 million). Bearing in mind the exceptionally large windfall effect booked in the second quarter of 2010, the very presentable pre-tax profit of EUR 38.2 million fell only marginally short of the year earlier figure (first half of 2010: EUR 43.4 million).
The Tubes Division performed well on the back of demand accelerating in market segments which lag the economic cycle and the growing impact of the profit improvement measures initiated. External sales remained virtually unchanged in comparison with the previous year's period (EUR 903.2 million; first half of 2010: EUR 892.0 million) whereas the pre tax result more than trebled to EUR 46.7 million owing to the successful turnaround of the precision tubes and the stainless tubes businesses (first half of 2010: EUR 13.1 million).
The Services Division raised its external sales by more than 20% to EUR 238.7 million in the first six months of 2011 (first half of 2010: EUR 195.3 million). This development was primarily attributable to DEUMU, a company trading in raw materials that benefited from firmer scrap prices. The pre tax profit of EUR 8.3 million was only slightly below the year earlier level (first half of 2010: EUR 11.4 million).
The Technology Division’s external sales were up by 13% to EUR 485.7 million (first half of 2010: EUR 429.7 million) in the first six months of 2011, buoyed by a healthier order book in the beverage filling plants business and ongoing brisk demand for services and replacement parts. Despite the positive developments in a number of regional markets and contributions to profit by the companies specialized in plastics injection moulding machinery, the pre-tax result remained unsatisfactory (EUR -17.7 million; first half of 2010: EUR -15.7 million). The main reason was the selling price level in KHS’s core business which despite an uptrend remained unsatisfactory.
The external sales of the Other Consolidation segment, generated through business in semi finished products with external parties, grew by almost two thirds in the period under review (EUR 41.8 million; first half of 2010: EUR 26.4 million). Pre-tax profit was reported at EUR 24.1 million (first half of 2010: EUR 18.9 million). After taking account of the purchase price allocation (EUR -4.8 million) obligatory under IFRS, this figure includes the very pleasing contribution to profit after tax of EUR 46.5 million by the Aurubis AG shareholding (first half of 2010: EUR 22.0 million net of EUR 2.4 million in purchase price allocation).
