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
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