By Christopher Alessi
FRANKFURT--German steelmaker ThyssenKrupp AG said Thursday that
net profit for the third quarter of fiscal year 2015 increased by
nearly five times that of the same period last year, driven largely
by the company's ongoing cost-cutting and restructuring
measures.
Net profit for the period ended June 30 was EUR199 million,
compared with EUR42 million year-over-year, beating analysts'
estimates. Analysts had forecast a net profit of EUR155 million,
according to a recent poll conducted by The Wall Street
Journal.
Sales rose by 4%, to EUR11.19 billion, boosted by strong growth
at the Components Technology division, which manufactures parts for
the automobile industry, and the Elevator Technology business.
Orders increased by 5%, to EUR10.65 billion.
Adjusted earnings before interest and taxes, or EBIT, jumped by
37%, to EUR539 million, driven by earnings growth at the Elevator
Technology, Steel Europe and Components Technology businesses, as
well as related efficiency measures.
Adjusted EBIT at the elevator division rose 22%, to EUR211
million, helped by demand for new installations in the U.S. and
South Korea. Adjusted EBIT at Components Technology increased by
32%, to EUR91 million, and climbed by 61% at Steel Europe, with
both businesses benefiting from the restructuring program.
"The further earnings improvement reflects the progress we have
made in implementing measures to increase efficiency," Chief
Executive Heinrich Hiesinger said in a statement.
Mr. Hiesinger, who took over the top job in 2011, has overhauled
the company's inflexible and disjointed business units and
implemented a comprehensive cost-savings plan. At the same time, he
has sought to shift the company's focus away from its traditional
steel businesses and on to capital goods like elevators, while
attempting to clean up the group's balance sheet.
Full group free cash flow was positive for the third quarter, at
EUR257 million, compared with a deficit of free cash for the same
period last year. However, group net financial debt rose slightly,
by 3%, to EUR4.39 billion.
ThyssenKrupp confirmed its outlook for fiscal year 2015,
continuing to guide for an adjusted EBIT between EUR1.6 billion and
EUR1.7 billion. All business areas, except the Steel Americas unit,
should generate "significant" positive contributions, the company
said.
Write to Christopher Alessi at christopher.alessi@wsj.com
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