ThyssenKrupp posts decline in first quarter profit
German steelmaker ThyssenKrupp AG disclosed that the company's profit fell 23 percent in the first quarter of its current fiscal year due to descending earnings in its
stainless steel and
automotive divisions.
Net income fell from Euro 331 million to Euro 255 million ($303.6 million) in the three months ended December 31.
Pre-tax profit fell 20 percent to Euro 425 million and operating profit declined 10 percent to Euro 898 million during the same period.
On the other hand, sales rose 8.5 percent to Euro 10.9 billion in the October-December period and new orders rose 6.4 percent to Euro 11.6 billion.
ThyssenKrupp indicated that they made a good start to the year. Demand for their products and services increased due to the pleasing economic environment. Nevertheless, lower demand in
Europe and
North America combined with falling base prices resulted in a significant drop in
stainless steel division's profit, said the company.