Germany-based steelmaker thyssenkrupp has announced its financial results for the financial year 2021-22 ended September 30.
The group has posted a net profit of €1.2 billion for the given year, compared to a net loss of €25 million in the previous fiscal year, due to improvement in earnings, while its sales revenue amounted to €41.1 billion, up by 21 percent year on year. Meanwhile, thyssenkrupp’s adjusted EBIT rose significantly to €2.1 billion from €796 million in the previous financial year.
In the given financial year, the company’s steel division was again negatively impacted by supply shortages and weaker demand, especially from the automotive industry. Order intake at the company’s steel division in the given period increased by 27 percent to €11.8 billion amid high prices and its sales grew 47 percent to €13.2 billion, both year on year. Despite the sharp hike in raw material and energy costs, adjusted EBIT of the steel division improved significantly to €1.2 billion, compared to €116 million in the previous financial year, thanks to a clear rise in average revenues, especially in the first half of the year. This was reinforced by the positive effects resulting from the ongoing restructuring program and the performance measures initiated in connection with the implementation of the company’s Steel Strategy 20-30.
In a market environment dominated by the energy crisis, high inflation and rising interest rates, thyssenkrupp expects the macroeconomic development in the financial year 2022-23 to be challenging. Despite assuming that the necessary fossil fuels and other raw materials remain available and business development is not hampered by renewed lockdowns, thyssenkrupp anticipates a significant reduction in sales in the financial year 2022-23.
