Steelmaker ThyssenKrupp reports a drop in Q3 profit

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ThyssenKrupp, the biggest German steel group, is doing well in its core activities, but said Friday that its third quarter net profit was hit once again by charges stemming from new plants.

The company reported a net profit of 212 million euros ($300 million) for the three months from April through June, a drop of 22 percent from the same period a year earlier.

Sales gained 10 percent however to 12.8 billion euros, and core earnings before interest and taxes (Ebit) was nine percent higher at 545 million euros.

Heavy charges were taken however, owing to higher-than-expected costs to launch plants in Brazil and the United States, the group said.

In addition to making steel, ThyssenKrupp makes elevators and auto parts and also provides industrial services.

Orders for all of its units were up by 29 percent to 14.12 billion euros.

With one more quarter to go, the group forecasts Ebit excluding exceptional items of around two billion euros for the year ending September 30.

That figure stood at 1.34 billion euros at the end of June.

ThyssenKrupp still has heavy debt of 6.2 billion euros but announced in May a restructuring programme that should help, in particular via asset sales.

The sale of a stainless steel unit and the US molding company ThyssenKrupp Waupaca are among those being worked on.

© 2011 AFP

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