ThyssenKrupp stands by targets despite Q1 loss
German heavy industry giant ThyssenKrupp said Friday it was sticking to its full-year targets despite a loss in the first quarter.
"Following the good operating start to the fiscal year, ThyssenKrupp reaffirms its outlook for the full year," the group said in a statement.
ThyssenKrupp runs its business year from October to September and the first quarter is the three months to December.
"In fiscal 2013/2014 the executive board expects sales before portfolio adjustments to grow year-on-year by a mid single-digit percentage rate," ThyssenKrupp said.
Full-year underlying profit, as measured by earnings before interest and tax (EBIT), "is expected to improve significantly year-on-year from 599 million to around 1.0 billion euros" ($1.3 billion), the statement said.
"Apart from Steel Americas all business areas will make positive contributions."
In the period from October to December, ThyssenKrupp booked net loss of 64 million euros, compared with a loss of just 1.0 million euros a year earlier.
The group explained that earnings were negatively impacted by 312 million euros in one-off charges connected with the sale of its stake in Finnish group Outokumpu.
By contrast, adjusted EBIT soared to 247 million euros from 38 million euros in the three-month period.
First-quarter sales, on the other hand, fell by 13 percent to 9.109 billion euros and new orders were down 5.0 percent at 10.671 billion euros, ThyssenKrupp said.
© 2014 AFP