Thyssenkrupp benefits from steel prices | Free press

Thyssenkrupp is currently doing good business with steel. It is not known how the split will continue in the longer term. It is said that they are still working on becoming independent.

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The steel and industrial group Thyssenkrupp continues to benefit from the increase in steel prices, despite the sharp increase in raw material and energy costs. As reported by the Essen company, sales and operating results increased significantly in the third quarter.

On the other hand, the group is burdened with higher interest rates: Thyssenkrupp had to make multi-million write-offs, which lowered the net profit. Consequently, the company lowered its net profit forecast.

The future of the now well-earning steel division is still open. Thyssenkrupp would like to separate the business, but implementation is currently uncertain due to an unstable environment. CFO Klaus Keysberg still believes that steel independence is the best option. “We’re still working on it,” he said in a conference call on Thursday. However, the exact form is uncertain. At the moment, no specific statements can be made about this.

Does North Rhine-Westphalia join the steel division?

The head of the main shareholder of the Krupp Foundation, Ursula Gather, welcomed the fact that the state of North Rhine-Westphalia has joined the steel division. In an interview, she described such a step as an “imaginable option” and justified it by the fact that the business needed capital to finance investments in green steel. Keysberg said there are currently no talks with the state government about involvement.

In the first nine months of the fiscal year 2021/22 (September 30), sales increased by 24 percent to EUR 30.6 billion compared to the same period last year. Thyssenkrupp more than tripled its Adjusted Earnings Before Interest and Taxes (EBIT) to EUR 1.9 billion after three quarters.

The company confirmed its sales forecast and EBIT. Accordingly, sales should continue to grow in the low double-digit percentage range. In the previous year, it was EUR 34 billion. Adjusted EBIT should be at least two billion euros (previous year: 796 million euros). At the end of June, the group employed a good 97,000. people, over 4,400 less than a year earlier. (dpa)

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