Steel Products
ThyssenKrupp Earnings & Steel Americas Impairment Loss
Written by John Packard
August 14, 2013
Written by: Sandy Williams
ThyssenKrupp reported adjusted EBIT €332 million ($439M) for the third quarter ending June 30, 2013 for its continuing operations, up from €241 million ($319M) in the second quarter. Third quarter net loss was €218 million in the third quarter as compared to a net profit of €403 million ($534M) in third quarter 2012.
Adjusted EBIT for the first nine months of 2013 was €802 million ($1,062M), compared with €1,117 million ($1480M) in the same period in 2012. Group net loss for the first nine months ended June 30 was €262 million ($347M). Sales dropped by 9 percent. Net financial debt was decreased by €0.5 billion ($660M) year over year to €5,326 million ($6,936M) at the end of June 2013. Shrinking liquidity and capital have been a concern but ThyssenKrupp said it has enough liquidity to cover debt maturities in the unlikely event of credit cancelation by banks.
The Steel Americas segment impairment loss of €683 million in March 2013 contributed heavily to the net loss of €1,205 million ($1,596M) for the full ThyssenKrupp Group in the first nine months. No further write downs are expected for the segment. ThyssenKrupp said the CSA blast furnace is back in production at 5000 tons/day and continues to ramp up.
In its outlook statement, ThyssenKrupp expects Group sales to be higher in the 4th quarter but full sales for 2013 to be lower in a year-over-year comparison. EBIT for FY 2012/2013 is expected to be around €1 billion ($1.32 billion).
John Packard
Read more from John PackardLatest in Steel Products
September energy market update
In this Premium analysis we examine North American oil and natural gas prices, drill rig activity, and crude oil stock levels through September. Trends in energy prices and rig counts serve as leading indicators for oil country tubular goods (OCTG) and line pipe demand.
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]
SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.
HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.