Thyssenkrupp Profit Down 34% From Last Year

By Christopher Alessi

FRANKFURT -- German industrial conglomerate Thyssenkrupp AG reported a 34% slide in net profit for the third quarter of its fiscal 2016, weighed down by drops in global steel and material prices from a year ago.

Net profit for the period ended June 30 was EUR130 million, compared with EUR199 million during the same period last year, slightly beating analysts' forecast. Analysts had predicted a net profit of EUR128 million, according to a recent poll conducted by The Wall Street Journal.

Sales fell by 12%, to EUR9.87 billion, while the company's closely watched adjusted earnings before interest and taxes fell by 18% to EUR441 million, both a result of weakness in the materials markets.

However, Thyssenkrupp's third-quarter results were a significant improvement over with the previous quarter, reflecting relative improvement in global steel prices and more stable raw materials markets.

Based on those macroeconomic developments, Thyssenkrupp reiterated its guidance for the full fiscal year, saying it expects adjusted EBIT to be "at least" EUR1.4 billion.

Write to Christopher Alessi at christopher.alessi@wsj.com

(END) Dow Jones Newswires

August 11, 2016 01:14 ET (05:14 GMT)

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