Germany-based steelmaker ThyssenKrupp has announced its financial results for the third quarter and the first nine months ended June 30 of the financial year 2012-13.
For the third quarter, ThyssenKrupp registered a net loss of €238 million, compared to a net profit of €390 million in the same quarter of the previous year, while during the first nine months the company saw a net loss of €298 million, compared to a net profit of €267 million in the corresponding period of the previous year. ThyssenKrupp added that the loss was mainly due to the impairment charge of €683 million on property, plant and equipment of the company's steel mills in the US and Brazil in the first half ending March 31.
The order intake of ThyssenKrupp in the third quarter decreased by 11 percent to €8.95 billion, while the company's sales revenue amounted to €9.5 billion, decreasing by eight percent, both year on year.
During the first nine months, the company's order intake amounted to €28.26 billion, down eight percent, while its sales revenue decreased by nine percent to €27.44 billion, both compared to the corresponding period of the previous year. At its European steel business, ThyssenKrupp registered year-on-year decreases of 11 percent and 12 percent in orders and sales respectively in the first nine months.
According to ThyssenKrupp, the company is engaged in very advanced negotiations with a leading bidder on the sale of its two steel plants in the US and Brazil. The negotiations include shareholder partner Vale, the Brazilian development bank BNDES and Brazilian government agencies. The company said that the aim remains to sign a deal promptly. In addition, ThyssenKrupp is also in talks with other interested parties.
"The sale process for Steel Americas is taking longer than originally expected. That's understandable because the bidders expect a full ramp-up of blast furnace No. 2 in Brazil. This has been hampered by process instabilities from May this year," ThyssenKrupp CEO Dr. Heinrich Hiesinger said.
ThyssenKrupp expects sales to increase in the fourth quarter compared to the third quarter, but full-year sales will be down year on year. The company stated that the sales lost due to portfolio measures, particularly at Steel Europe and Components Technology, will not be fully offset by organic growth in the capital goods businesses.