By Christopher Alessi
FRANKFURT--German industrial conglomerate ThyssenKrupp AG on
Tuesday raised its outlook for the 2015 fiscal year, even as the
company posted a steep decline in net profit for the second
quarter.
The steelmaker said it now expects adjusted earnings before
interest and taxes for this year to increase "significantly" to
between EUR1.6 billion ($1.79 billion) and EUR1.7 billion, up from
an earlier prediction of EUR1.5 billion.
"Our measures to improve efficiency are working and we are
moving forward with the transformation of the group," said
ThyssenKrupp Chief Executive Heinrich Hiesinger. Since taking the
helm in 2011, Mr. Hiesinger has overseen a comprehensive
restructuring and cost savings plan, as he seeks to shift the
company's focus from its traditional steel businesses and onto
capital goods.
However, net profit for the period ended March 31 plummeted to
EUR50 million, compared with EUR271 million during the same quarter
last year, weighed down by impairment charges booked for the recent
sale of the company's stainless steel business, VDM Group.
Net profit fell short of forecasts by analysts, who had
predicted a second quarter profit of EUR104 million, according to a
recent poll by The Wall Street Journal.
Sales rose by 7% to EUR11 billion, helped by organic growth in
the capital goods businesses and positive currency effects. Orders
were up slightly, by 2%, to EUR10.41 billion, boosted by a record
number of new orders at the company's elevator business.
Write to Christopher Alessi at christopher.alessi@wsj.com
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