Thursday, November 18, 2021
Billions in profit targeted
Thyssenkrupp wants to end the lean period
The industrial group Thyssenkrupp is once again in the red. But that should end: in the new financial year, the fruits of the renovation should be reaped. In the end, the highest profit in a decade and a half should be on the books. For this purpose, outsourcing and IPOs are examined.
Thyssenkrupp has significantly improved its earnings in the past fiscal year and now wants to soar to past profit levels. The operating result is to be roughly doubled to 1.5 billion to 1.8 billion euros in the 2021/22 financial year (as of the end of September), thanks to better figures in the steel division, the group announced. The bottom line is that Thyssenkrupp is aiming for a profit for the year of at least one billion euros – this would be the highest net profit since fiscal year 2007/08.
Sales climbed by almost a fifth to 34 billion euros, and incoming orders by as much as 41 percent to 39.6 billion euros. In the end, however, after shares held by third parties, there was a loss of 109 million euros, so there should be no dividend again. Group boss Martina Merz is continuing the restructuring. The hydrogen business could be brought to the stock exchange with a minority stake and the steel division transferred to independence.
“Trend reversal recognizable”
“The trend reversal can be seen, things are going in the right direction at Thyssenkrupp,” said Merz. The performance has improved significantly. “We want to take this momentum with us into the next phase of our transformation in order to grow profitably in our businesses again.” The shortage of semiconductors and the uncertainties caused by the corona pandemic are still major challenges.
The steel division remains the linchpin for the balance sheet. With an operating result of 116 million euros, it performed significantly better than in the previous year, which had a negative impact on the entire group with a loss of 820 million euros. In the new year, the division is aiming for a further significant improvement in earnings. It is open whether and how long she will stay with the group. “In addition to preparing the usual carve-out topics, Thyssenkrupp is conducting a feasibility study to determine the conditions under which the steel division can become independent.”
For the hydrogen subsidiary Uhde Chlorine Engineers (UCE), the considerations are already further. “The company is therefore intensively examining how the hydrogen business can be further developed in the best possible way. Thyssenkrupp is currently planning an IPO as a preferred solution. In any case, Thyssenkrupp would retain a majority in the business.”