ThyssenKrupp raises full-year targets

12th May 2015, Comments 0 comments

German heavy industry giant ThyssenKrupp on Tuesday raised its full-year forecasts after better-than-expected earnings in the second quarter.

ThyssenKrupp, which runs its year from October to September, said in a statement that "against the background of the progress made in operating performance and the generally stabilising economic conditions, management has specified and raised its forecast for the full year 2014/2015."

The group said it now expected underlying or operating profit to "increase significantly to 1.6-1.7 billion euros ($1.8-1.9 billion)."

With the exception of its steel business in the Americas -- which was expected to only break even -- "all business areas will generate significant positive contributions," the statement said.

Group sales were expected to grow by a "single-digit percentage rate", and "management likewise expects a significant improvement in net income" from 195 million euros last year.

In its second quarter alone, the period from January to March, underlying or operating profit jumped by 32 percent to 405 million euros, beating analysts' expectations.

Net profit, however, tumbled by 82 percent to 48 million euros as a result of one-off charges related to the sale of its stainless steel unit VDM.

Second-quarter sales grew by 7.0 percent to 10.995 billion euros, ThyssenKrupp said.

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© 2015 AFP

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