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ThyssenKrupp’s net loss leaps to $94M in quarter

Keywords: Tags  steel, ThyssenKrupp, ThyssenKrupp Americas, earnings report, Outokumpu, Elfi Middelbeek

LONDON — ThyssenKrupp AG’s net loss surged in its fiscal first quarter, attributing it largely to the sale of its 29.9-percent shareholding in Outokumpu Oyj in December.

Essen, Germany-based ThyssenKrupp reported a net loss of €69 million ($94 million) for the three months ended Dec. 31, more than four times the €16-million loss in the same period a year earlier, it said Feb. 14 in its earnings report.

However, earnings before interest, taxes, depreciation and amortization (Ebitda) improved to €655 million ($893 million) from €444 million in the same comparison, mostly due to the performance of the capital goods side of the business.

Net sales fell 12.5 percent year on year to €9.11 billion ($12.4 billion) due to divestments, exchange rate factors, and lower prices in its global materials trading and European steel units.

Meanwhile, the company’s Steel Americas division reported Ebit of €1 million ($1.4 million) for the quarter vs. negative Ebit of €122 million a year earlier. Order intake rose 8.8 percent year on year to €609 million ($830.6 million).

The materials services business reported a 19.4-percent year-on-year increase in Ebit to €43 million ($58.6 million) due to positive results in North America and Eastern Europe.

Steel Europe showed a 31-percent drop in Ebit to €20 million ($27.3 million) from €29 million in the year-earlier quarter, which was "primarily the result of inadequate average selling prices," ThyssenKrupp said.

A version of this article was first published by AMM sister publication Steel First.

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