ThyssenKrupp raises earnings forecast for FY 2020-21

Thursday, 11 February 2021 14:35:40 (GMT+3)   |   Istanbul

Germany-based steelmaker Thyssenkrupp has announced its financial results for the first quarter ended December 31 of the financial year 2020-21. The group has posted a net loss of €145 million for the given period, compared to a net loss of €372 million in the same period of the previous fiscal year, while its sales revenue was €7.3 billion compared to €7.6 billion in the same period of the previous year. Meanwhile, ThyssenKrupp’s adjusted EBIT rose significantly to €78 million compared to the same period of the previous fiscal year. 

“In a continuing uncertain market environment, we had a good first quarter: we’re noticing signs of an economic recovery and our measures to improve performance in the businesses are starting to bear fruit,” said Martina Merz, CEO of Thyssenkrupp. 

In a structurally extremely challenging market environment, in the first quarter order intake and sales at the company’s steel division were up 17 percent and seven percent respectively from the prior year. After the unprecedented pandemic-related demand slump in spring and summer 2020, business is now picking up again. As a result of increasing capacity utilization together with initial effects from the ongoing restructuring with advancing personnel reduction and the initiated performance measures, adjusted EBIT of the steel division improved significantly to €20 million.

In view of the good first quarter performance, the company has raised its earnings forecast for the 2020-21 fiscal year. According to the company, depending on the further progression of the coronavirus pandemic, sales will grow in the high single-digit percentage range, but will still remain well below the level prior to the pandemic.

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