thyssenkrupp Reports Strong Momentum in 2nd Quarter
ThyssenkruppThyssenkrupp

thyssenkrupp Reports Strong Momentum in 2nd Quarter

thyssenkrupp was able to build on its good 1st-quarter performance in the 2nd quarter of the current fiscal year 2020/2021. The group’s order intake was up

thyssenkrupp was able to build on its good 1st-quarter performance in the 2nd quarter of the current fiscal year 2020/2021. The group’s order intake was up 14% against the comparable prior-year period at EUR 8.6 billion. Sales in the 2nd quarter also increased by 4% to EUR 8.6 billion as compared to EUR 8.2 billion in prior year. Adjusted EBIT came to EUR 220 million, up significantly from the prior-year figure of minus EUR 279 million. Almost all segments contributed to this earnings improvement. Positive effects from the restructuring and efficiency measures supported this growth. thyssenkrupp AG CEO Ms Martina Merz said “We made up more ground in the 2nd quarter. On the one hand we were helped by the recovery in many of our markets. On the other, our performance measures are having the planned effect. That’s good and gives us confidence. But we also know that we still have a lot of work to do. So we’re not sitting back. The realignment of thyssenkrupp remains a journey of many small steps and we’re taking those steps.”

In a continued structurally challenging market environment, order intake and sales at Steel Europe were up 13 percent and 8 percent respectively from the prior year. As a result of catch-up effects above all from the automotive industry and strong demand from restocking particularly at steel processors, business continued to pick up. Adjusted EBIT improved significantly to EUR 47 million (prior year minus EUR 181 million). Reasons for this were higher capacity utilization combined with an improved product mix and positive price trend as well as initial effects of the ongoing restructuring and the initiated performance measures.

Crude steel production increased 5.7% year on year to 2.2 million tonnes at the integrated steelworks in the company's financial Q2, largely stable quarter on quarter. Thyssenkrupp's semis producer HKM saw an output increase of 5.6% to 756,000 tonnes, a quarter-on-quarter uptick of 1.7%. Shipments of cold-rolled slightly decreased from 1.8 million tonnes in Q2 last year to 1.7 million tonnes Q2 this year, but saw a 6.3% increase quarter on quarter. Hot-rolled shipments grew from 122,000 tonnes Q2 last year to 129,000 tonnes this year, recording a 5.7% increase compared with the first quarter of the year.

In light of the good 1st half performance, thyssenkrupp has raised its forecast for the current fiscal year for both sales and earnings. Despite the clear improvements, thyssenkrupp expects a net loss of up to a mid 3-digit million euro amount (previously: net loss in the high 3-digit million euro range; prior year minus EUR 5.5 billion). This includes restructuring expenses in the mid 3-digit million euro range.

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