Thyssenkrupp 1Q Profit Soared on Higher Sales, Rising Steel Prices
February 14 2018 - 1:40AM
Dow Jones News
By Nathan Allen
Thyssenkrupp AG's (TKA.XE) net profit for the first quarter of
its fiscal year increased almost ten-fold due to higher sales,
stronger steel prices and high one-off costs in the year-earlier
period, the company said Wednesday.
Net income for October-December was 78 million euros ($95.7
million), up from EUR8 million a year earlier. The quarterly profit
figure includes an EUR87 million hit from the recent U.S. tax
reforms, the company said.
Net sales fell 3% on year to EUR9.82 billion, Thyssenkrupp
said.
The company's closely watched adjusted earnings before interest
and taxes, or EBIT, climbed to EUR444 million from EUR291 million,
thanks largely to higher earnings at its steel business, which
benefited from a continued price recovery, Thyssenkrupp said.
In the capital goods business, both the elevator technology unit
and the components technology unit reported slightly higher
earnings. However, adjusted EBIT at the industrial solutions unit
fell to EUR12 million from EUR42 million.
Thyssenkrupp attributed the fall to an unfavorable comparison
effect, as it booked a large order in the first quarter of the
previous year.
The company confirmed its fiscal-year guidance of clearly
positive net income and adjusted EBIT of between EUR1.8 billion and
EUR2 billion.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
February 14, 2018 01:25 ET (06:25 GMT)
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