Thyssenkrupp raises annual outlook for first time in nearly four years


By Christoph Steitz and Tom Käckenhoff

FRANKFURT (Reuters) - German conglomerate Thyssenkrupp AG on Wednesday raised its full-year outlook for the first time in nearly four years, citing turnaround efforts as well as improved demand for automotive components and materials.

"In a continuing uncertain market environment, we had a good first quarter: we're noticing signs of an economic recovery and our measures to improve performance in the businesses are starting to bear fruit," Chief Executive Officer Martina Merz said.

The group now expects to almost break even on an adjusted operating profit level, having previously forecast a mid triple-digit million euro loss in the year to September.

Thyssenkrupp's steel division, which could be sold, spun off or kept, swung to an adjusted operating profit of 20 million euros ($24 million) in the first quarter, compared with a loss of 127 million in the same period last year.

"The group might have turned the ship just in time," a Frankfurt-based trader said, adding that the company's operating units were profitable in the quarter. "Almost can't remember last time we have seen this.

Thyssenkrupp's shares were indicated to open 6.6% higher in premarket trade.

On a group level, adjusted operating profit came in at 78 million euros in the October-December quarter, a level that will decline in the January-March period, the company said.

($1 = 0.8248 euros)


(Reporting by Christoph Steitz and Tom Käckenhoff; Editing by Kirsti Knolle and Shounak Dasgupta)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel