The performance of the business areas in the first nine months 2011-12 was as follows:
Business at Steel Europe was impacted by a drop in shipments due to lower demand. In addition, the disposal of the Metal Forming business had a negative effect on sales. In the first nine months sales came to EUR 8.3 billion. Adjusted EBIT reached EUR 184 million; earnings in the third quarter showed a marked improvement on the second quarter.
In a difficult business environment Steel Americas won more new customers and increased sales significantly year on year to EUR 1.6 billion. Over 2.0 million tonnes of flat steel were sold altogether on the North American market. The main reasons for the negative adjusted EBIT of EUR 778 million were the difficult business environment on the North American market with an unsatisfactory price level above all in service center business, which is particularly important for the startup, and considerable costs due to the not yet efficient utilization of the blast furnaces.
The weakness of the market also caused a sharp drop in demand at Materials Services. Sales fell by ten percent to EUR 9.9 billion. However, the materials and logistics operations for the aerospace sector performed very positively. Adjusted EBIT at EUR 222 million was lower than a year earlier (EUR 397 million). EBIT was additionally impacted by the EUR 103 million fine imposed by the Cartel Office in the third quarter and provisions of EUR 30 million in connection with the rail cartel proceedings.
Elevator Technology achieved record orders of EUR 4.6 billion (up 15%) in the first nine months. Sales also increased significantly, by 6% to EUR 4.1 billion. However, earnings and margin performance were impacted by continued difficult market conditions in Southern Europe. Adjusted EBIT came to EUR 421 million (prior year EUR 469 million). To further expand Elevator Technology's strong competitive position, a EUR 81 million growth and investment program was adopted for the Neuhausen location in the third quarter.
Plant Technology held up well in an increasingly competitive market. In the first nine months new orders worth EUR 2.6 billion were won. Sales reached EUR 3.0 billion, five percent higher than a year earlier. Adjusted EBIT came to EUR 380 million, slightly exceeding the high prior-year level. In July 2012 Plant Technology acquired the UK consultancy Energy & Power Global, further strengthening its engineering capabilities in the global oil and gas business.
Despite the sale of the chassis component manufacturer ThyssenKrupp Automotive Systems Industrial do Brasil, Components Technology achieved EUR 5.5 billion in both orders and sales, a significant year on year improvement. Although vehicle sales in Europe were down overall, the business area profited from the strong performance of major customers and brisk demand in the mid size and premium segments. At EUR 365 million, adjusted EBIT was down slightly year on year. This was mainly due to weaker demand in the wind energy and infrastructure sectors mainly in China and startup costs for new products and plants.
Marine Systems continues to profit from the growth in demand for frigates and submarines. In the reporting period Marine Systems’ order intake amounted to EUR 1.4 billion. At EUR 140 million adjusted EBIT reached a very pleasing level.
Strategic development of the group
ThyssenKrupp again achieved important progress with the implementation of its strategic development program in the third quarter. As part of the portfolio optimization, the US iron foundry Waupaca was sold to KPS Capital Partners on June 29th 2012. This means that measured in terms of sales volume, 90% of the planned disposals have already been signed or completed. ThyssenKrupp continues to expect the combination of Outokumpu and Inoxum to be completed before the end of 2012.
In addition, ThyssenKrupp announced on May 15th 2012 that it was examining strategic options in all directions for the two plants of Steel Americas in Brazil and the USA. The banks Goldman Sachs and Morgan were mandated to provide support. The strategic review is being conducted with an open mind and in parallel with the continued operational ramp up.
Furthermore, ThyssenKrupp is in advanced negotiations to sell the Construction group of ThyssenKrupp Steel Europe. Sale options are also being considered for the Italian company Berco, a supplier of undercarriages for construction equipment.
Source - ThyssenKrupp
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