TKAMY Thyssenkrupp AG (PK)

(Updates with fourth-quarter results.)

 
   By Nathan Allen 
 

Thyssenkrupp AG (TKA.XE) said Wednesday that its net loss widened in its fiscal fourth quarter but that it remains cautiously optimistic for the year ahead and has issued new guidance.

The group reported a net loss of 182 million euros ($207.8 million) for the July-to-September period compared with a loss of EUR84 million a year earlier. Sales climbed to EUR11.06 billion from EUR10.68 billion, the company said.

Adjusted earnings before interest and taxes, which strips out one-off effects, came to EUR275 million, missing a consensus forecast of EUR324 million.

Thyssenkrupp attributed the weaker-than-expected earnings to operational issues and risk provisions at its components unit and high raw materials costs and currency headwinds at its elevator unit.

On an annual basis the company swung to a profit in the 2018 fiscal year, posting net profit of EUR8 million compared with a net loss of EUR649 million a year earlier.

Regarding a restructuring plan that the German company unveiled in September, Thyssenkrupp said it aims to be operating effectively as two companies by October next year, while the formal separation of its businesses should be approved at the group's 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.

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

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

(END) Dow Jones Newswires

November 21, 2018 02:09 ET (07:09 GMT)

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