Thyssenkrupp Swung to Profit in FY18, Issues Guidance

   By Nathan Allen

Thyssenkrupp AG (TKA.XE) said Wednesday that it swung to a profit in the 2018 fiscal year and set new targets for the 2019 fiscal year.

Net profit for the 12 months ended Sept. 30 was 8 million euros ($9.1 million), compared with a net loss of EUR649 million a year earlier, the company said.

Sales edged down to EUR42.75 billion ($48.61 billion) from EUR42.97 billion, while orders dropped 3% to EUR42.75 billion, the company said.

Adjusted earnings before interest and taxes was EUR1.55 billion, missing the revised target of EUR1.8 billion released in July.

Regarding the proposed group restructuring, Thyssenkrupp said it aims to have the two companies operating separately by October 2019 while the separation of its two businesses should be approved at the annual general meeting in January.

The transition process will weigh heavily on cash generation and net profit in the coming year. The group estimates costs will be in the high three-digit million euro range.

Based on these projections, the company issued fresh guidance for the current fiscal year.

The group is targeting adjusted Ebit from continuing operations of more than EUR1 billion, while net income should increase significantly on year.

Late Tuesday the company named Martina Merz to the supervisory board.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

November 21, 2018 01:21 ET (06:21 GMT)

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