NEW YORK ThyssenKrupp AG
has listed Steel Americas as a discontinued operation, taking a
3.6-billion ($4.7-billion) write-down on the assets as
the companys overall net loss soared to 4.67
billion ($6.07 billion) in its fiscal year ended Sept. 30 from
a 1.29-billion loss the previous year.
The Essen, Germany-based
steelmaker said it had taken the 3.6-billion impairment
charge on its Steel Americas operations "due to the advanced
status of the sale process for the plants in Brazil and the
"In connection with the
classification of Steel Americas as a discontinued operation, a
write-down to a fair value of 3.6 billion was necessary,"
the company said. "The fair value was determined from internal
calculations and knowledge from the ongoing sales process."
ThyssenKrupp had said previously
that it planned to recoup the book value of the
assetsabout 7 billion ($8.9 billion)as it
sought to sell or partner on its facilities in Calvert, Ala.,
and Brazil (
amm.com, Aug. 28).
ThyssenKrupps board voted
to terminate the appointments of executive board members Olaf
Berlien, Jürgen Claassen and Edwin Eichler effective Dec.
31 based on the "overall responsibility" and "leadership
culture" of the group. The company had announced last week that
the board members had been asked to vacate their positions amid
the struggling Steel Americas investment and a series of
"corruption and cartel cases" (
amm.com, Dec. 5).
"The Steel Americas project and
the various compliance violations have not just caused immense
financial damage. We have also lost trust and credibility,"
Heinrich Hiesinger, chairman and chief executive officer of the
German steel company, said in a statement. "With the changes on
the executive board, the supervisory board has sent out a clear
signal for a fresh start."
Excluding Steel Americas and
stainless division Inoxumwhich is merging with Outokumpu
amm.com, Nov. 7)ThyssenKrupps earnings
before interest, taxes, depreciation and amortization (Ebitda)
totaled nearly 2.43 billion ($3.15 billion) in the 12
months ended Sept. 30, down 40 percent from 4.03 billion
the previous year due mostly to the difficult market
environment weighing on the Steel Europe and materials services
The company confirmed its
"performance orientation" strategy. "With the completion of our
portfolio optimization program and the sale of Steel Americas,
the weight of our capital goods operations within the group
will increase significantly," Hiesinger said. The company
expects its continued efficiency program to cut costs by a
cumulative 2 billion ($2.6 billion) over the next three
As part of its restructuring
plans, the company announced that the plant technology and
marine systems divisions will form a joint operation, called
Industrial Solutions, effective Jan. 1.
Elfi Middelbeek, London,
contributed to this story.