German steel giant ThyssenKrupp was able to build on its good 1st-quarter performance in the 2nd quarter of the current fiscal year 2021/2022. The group’s order intake went up by over 50% YoY to a total of EUR 13.6 billion. Key drivers were higher market prices for many materials at Materials Services and Steel Europe and a major order in the marine business. Sales in the 2nd quarter increased by 24% to EUR 10.6 billion, while adjusted EBIT came to EUR 802 million, also significantly above the prior-year figure of EUR 220 million and above the figure of EUR 378 million for the previous quarter.This increase in earnings was attributable in particular to higher revenues and improved margins at Materials Services and Steel Europe. It more than offset adverse factors from increasing materials, logistics and energy costs and the worsening supply chain problems, which mainly affected the automotive and components-related businesses. Positive effects from the performance and efficiency measures supported this growth.In light of the good 1st-half performance and based on the current underlying assumptions, ThyssenKrupp has raised its forecast for the current fiscal year for both sales and earnings. The forecast of free cash flow before M&A, which was suspended in March, has been resumed. Because of the rise in commodity and other materials prices as well as delays in customer call-offs, the company expects a negative figure in the mid-three-digit million euro range here.
German steel giant ThyssenKrupp was able to build on its good 1st-quarter performance in the 2nd quarter of the current fiscal year 2021/2022. The group’s order intake went up by over 50% YoY to a total of EUR 13.6 billion. Key drivers were higher market prices for many materials at Materials Services and Steel Europe and a major order in the marine business. Sales in the 2nd quarter increased by 24% to EUR 10.6 billion, while adjusted EBIT came to EUR 802 million, also significantly above the prior-year figure of EUR 220 million and above the figure of EUR 378 million for the previous quarter.This increase in earnings was attributable in particular to higher revenues and improved margins at Materials Services and Steel Europe. It more than offset adverse factors from increasing materials, logistics and energy costs and the worsening supply chain problems, which mainly affected the automotive and components-related businesses. Positive effects from the performance and efficiency measures supported this growth.In light of the good 1st-half performance and based on the current underlying assumptions, ThyssenKrupp has raised its forecast for the current fiscal year for both sales and earnings. The forecast of free cash flow before M&A, which was suspended in March, has been resumed. Because of the rise in commodity and other materials prices as well as delays in customer call-offs, the company expects a negative figure in the mid-three-digit million euro range here.
