After recording a loss the previous year, annual net profit hit 1.2 billion euros ($1.2 billion) in the 2021-2022 financial year.

The conglomerate said the improved performance was due to higher prices in important divisions, such as materials services and industrial components, as well as its “Steel Europe” division.

The Essen-based company, which runs its business year from October to September, saw its sales increase by 21 percent to reach 41.1 billion euros.

The upturn comes on the back of a drive to reduce costs at the firm, whose products range from steel sheeting to submarines, that has included shedding a substantial number of jobs.

“We have increased our resilience and solidity, and our businesses are now in a better position to respond appropriately and in a targeted manner to crises,” said CEO Martina Merz.

The firm had “proven comparatively robust in the face of three external shocks — the pandemic, the semiconductor shortage, and war,” she added.

The 2022-23 financial year may be tougher however due to lower prices of steel — the company expects a sharp fall in sales.

Soaring energy prices, rising interest rates and ongoing supply chain woes are also expected to hurt the bottom line.

lep-sr/hmn/rl