Germany-based integrated materials and technology group ThyssenKrupp announced on May 12 that in the first half (ended March 31) of its financial year 2009-10, the company's earnings before taxes amounted to €504 million due to higher demand, increased productivity and in particular realized cost savings, improving from a pre-tax loss of €215 million in the first half of the previous financial year
In the given period, ThyssenKrupp's sales decreased by nine percent year on year to €19.5 billion, while its EBITDA reached €1.51 billion, compared to €906 million in the corresponding period of the previous financial year. The company's order intake regressed four percent year on year to €19.7 billion.
Sales of the company's shipyards business decreased sharply due to billing factors; there were smaller declines in the materials services and plant technology areas. Sales of stainless steel and auto components improved.
Commenting on the results, ThyssenKrupp's executive board chairman Dr. Ekkehard Schulz said, "We are cautiously optimistic that the current economic recovery will prove sustainable. The implementation and effect on income of our structural improvement measures are fully in line with our expectations and will strengthen the group's earning power on a sustainable basis. However, it is not yet possible to reliably assess the impact of the massive price increases for important raw materials."
Meanwhile, in the second quarter of its financial year 2009-10, ThyssenKrupp recorded earnings before taxes of €191 million, up from a pre-tax loss of €455 million in the corresponding period of the previous financial year, while its sales climbed by eight percent quarter on quarter, with all business areas either holding or increasing their sales levels, and were up 2.52 percent year on year, reaching €10.11 billion. The company's EBITDA was €700 million, compared to €142 million in the year-ago period.
ThyssenKrupp said that it continues to anticipate that sales will stabilize in the fiscal year 2009-10. Earnings are expected to improve significantly and to return to profit, thanks in large part to the cost-cutting programs introduced.