Thyssenkrupp Swings to Profit

By Christopher Alessi

FRANKFURT -- German industrial conglomerate Thyssenkrupp said Thursday it swung to a net profit for the first quarter of its fiscal year 2017, boosted by continued growth in its capital goods businesses.

Net profit for the period ended Dec. 31 was EUR8 million ($8.55 million), compared with a net loss of EUR23 million during the same period a year prior, falling short of analysts' forecasts. Analysts had predicted a net profit of EUR92 million, according to a recent poll conducted by The Wall Street Journal.

The company's closely watched adjusted earnings before interest and taxes climbed by 40% year-over-year to EUR329 million, a result of steady earnings growth at the elevator and specialty auto components units.

Over all growth was held back in part by the company's European steel operations, which came under pressure to due to higher raw material prices.

Sales rose by 6%, to EUR10.09 billion, helped by new elevator installations in the U.S.

Thyssenkrupp reiterated its guidance for fiscal 2017, saying it expects adjusted EBIT to increase to around EUR1.7 billion, compared with EUR1.5 billion last year.

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

(END) Dow Jones Newswires

February 09, 2017 01:14 ET (06:14 GMT)

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