ThyssenKrupp Expects Costs to Fall by at Least EUR1 Billion This Fiscal Year -- Report
September 05 2015 - 5:56AM
Dow Jones News
By Neetha Mahadevan
FRANKFURT--German steel maker ThyssenKrupp AG (TKA.XE) expects
to get a better handle on costs than planned in the current fiscal
year ending September, with costs expected to fall by at least one
billion euros, Chief Financial Offer Guido Kerkhoff said in an
interview with German newspaper Boersen-Zeitung on Saturday.
So far, the company had a savings target of EUR850 million for
the fiscal year. Mr. Kerkhoff said the savings program will
continue to pay off and help further improve the operating result.
"This can then also go far beyond a consolidated EBIT [earnings
before interest and tax] of 2 billion euros," which is
ThyssenKrupp's medium-term target, Mr. Kerkhoff said.
He didn't specify if this guidance can already be achieved in
the beginning of the next fiscal year. However, the company still
expects to achieve operating earnings at the upper end of the
targeted EUR1.6 billion to EUR1.7 billion for this fiscal year.
Cost savings play an important role for ThyssenKrupp, where
Chief Executive Heinrich Hiesinger is overhauling the company's
inflexible and disjointed business units to make it more profitable
in the long term. In the third-quarter ended June, the company
reported net profit increased by nearly five times from the same
period last year, driven largely by the company's cost-cutting and
restructuring measures.
Write to Neetha Mahadevan at Neetha.Mahadevan@wsj.com
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(END) Dow Jones Newswires
September 05, 2015 05:41 ET (09:41 GMT)
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