German group ThyssenKrupp, which specializes in steel production, capital goods and services, has released its financial results for financial year 2007-2008.
According to the company's release, in FY 2007-2008 ThyssenKrupp's earnings before taxes reached €3.128 million, down from the figure of €3.330 million for the previous year.
Meanwhile, the demand for the company's products and services increased further, the company's order intake amounted to €55.2 billion, up from the previous year's figure of €54.6 billion. Also in FY 2007-2008, ThyssenKrupp's sales totaled €53.4 billion, 3.28 percent higher year on year.
In the uncertain environment of the financial crisis, which includes the downturn in the auto, machinery and construction industries, ThyssenKrupp has reviewed its plans and targets for the current fiscal year 2008-2009. "We therefore face a significant drop in sales in 2008-2009, the extent of which cannot yet be predicted. This will have a corresponding effect on earnings. The increasing uncertainty on the financial and real markets makes it impossible to provide a quantifiable forecast at this time," ThyssenKrupp's executive board chairman Dr. Ekkehard Schulz stated.
In order to safeguard earnings and liquidity, ThyssenKrupp has taken clear steps to reduce costs, lower net working capital and flexibilize its investment program.
On the other hand, in the medium to longer term, ThyssenKrupp expects to achieve earnings before taxes and major nonrecurring items of €4 to 5 billion and sales of €60 to 65 billion.