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Order intake and sales robust at high level due to strong demandfor capital goods / Group earnings impacted by difficult pricesituation in materials and startup losses at Steel Americas / Allcontinuing operations except Steel Americas with positive earningscontributions / Quarter-on-quarter improvement in adjusted EBIT /Outlook: Moderate improvement in second half and for fiscal year asa whole adjusted EBIT in the mid three-digit million euro range In the first half 2011/2012 (October 1, 2011 - March 31, 2012) theThyssenKrupp Group's orders from continuing operations (withoutInoxum) increased by 2 percent to €21.7 billion, while sales,down 1 percent to €20.5 billion, were largely unchanged.Effects from the generally difficult market environment formaterials were offset by increased contributions from practicallyall capital goods operations. Adjusted EBIT decreased from €696 million in the prior-yearperiod to €217 million. This reduction in earnings was mainlydue to the generally weaker market environment and more intensecompetition in the materials sector. As expected, earnings in thefirst half 2011/2012 continued to be impacted by the startup lossesat Steel Americas, though these were reduced both year-on-year andquarter-on-quarter. All other continuing operations deliveredclearly positive earnings contributions. Overall, the ThyssenKruppGroup expects a moderate improvement in the second half of thefiscal year and adjusted EBIT for the full year in the midthree-digit million euro range. Dr. Heinrich Hiesinger, Executive Board Chairman of ThyssenKruppAG: "Demand in the capital goods segment is very pleasing.However, margins in the materials business are being impacted byintense competition and unsatisfactory prices. Overall we believethat we have passed the worst in terms of earnings. We aretherefore cautiously optimistic about the second half." Positive performance in second quarter 2011/2012 In the second quarter 2011/2012 order intake (€11.6 billion,up 15 percent) and sales (€10.6 billion, up 7 percent) fromcontinuing operations improved significantly quarter-on-quarter.Adjusted EBIT increased against the prior quarter (€134million, up 61 percent). The materials businesses improved slightlyoverall in the second quarter. However, the typical seasonal volumeimprovement against the first quarter was offset by increased priceand margin pressure particularly in the European steel business.The losses at Steel Americas were lower but could not be offset bypositive earnings contributions from the Steel Europe and MaterialsServices business areas. Demand in the capital goods segment waspleasing: Orders in all business areas increased stronglyquarter-on-quarter. Earnings too were up from the first quarter2011/2012 as a result of higher contributions from the componentsand naval shipbuilding businesses. The highlights for the continuing operations in the first half ofthe current fiscal year versus the first half 2010/2011 and thesecond quarter versus the first quarter 2011/2012 are as follows: First-half order intake was 2 percent higher year-on-year at€21.7 billion. New orders in the second quarter increasedquarter-on-quarter by 15 percent to €11.6 billion. Sales decreased year-on-year by 1 percent to €20.5 billion inthe first half 2011/2012. Sales in the second quarter were 7percent higher than in the prior quarter at €10.6 billion. Adjusted EBIT in the first half 2011/2012 came to €217 millioncompared with €696 million a year earlier. Quarter-on-quarterthere was a 61 percent improvement to €134 million. AdjustedEBIT margin declined from 3.4 percent in the first half 2010/2011to 1.1 percent in the first half 2011/2012. EBIT in the first half 2011/2012 was €43 million, down from€696 million a year earlier. In the second quarter 2011/2012EBIT increased to €76 million from €(33) million in theprior quarter. Earnings per share in the first half 2011/2012 decreased from€0.80 to €(0.89). Quarter-on-quarter earnings per sharedeclined from €(0.30) to €(0.59). Net financial debt (including Inoxum) at March 31, 2012 came to€6,480 million, down slightly from the prior year (March 31,2011: €6,492 million). Compared with December 31, 2011(€5,937 million) net financial debt showed an increase, as inthe previous year. Key factors were the ramp-up of the new carbonand stainless steel plants in Brazil and the USA and the dividendpayment. Implementation of strategic development program proceeding to plan ThyssenKrupp continued to drive forward the strategic developmentand portfolio optimization in the 1st half 2011/2012. On January31, 2012 ThyssenKrupp and the Finnish stainless steel producerOutokumpu agreed to combine Outokumpu and Inoxum, the stainlesssteel arm of ThyssenKrupp. The transaction is subject to approvalby the competent regulatory authorities. It is still expected thatthe transaction will close by the end of 2012. In addition furthersteps were successfully implemented in the reporting period withthe sale of the civil shipbuilding operations of ThyssenKruppMarine Systems and integration of the chassis operations of theBilstein group and Presta Steering into ThyssenKrupp Chassis. Forthe North American foundry Waupaca, ThyssenKrupp signed a stockpurchase agreement with KPS Capital Partners of New York on May 14,2012. The transaction is subject to approval by the supervisorybodies. The disposal processes for the springs and stabilizersbusiness and ThyssenKrupp Tailored Blanks are being continued.ThyssenKrupp is currently in talks with various potential buyersfor each of the businesses. The implementation of the strategic development program adopted inMay 2011 is therefore proceeding fully according to plan. Contractshave been signed or disposals completed for altogether around 90percent of the sales volume to be divested. The corporate programimpact is also delivering results and based on current planningwill reduce costs Groupwide by around €300 million in thecurrent fiscal year. In February 2012 ThyssenKrupp issued a €1.25 billion bond witha maturity of five years. The issue made use of the favorablemarket environment to further strengthen the company's solidfinancing. Outlook for fiscal 2011/2012: Adjusted EBIT in mid three-digitmillion euro range expected For fiscal year 2011/2012 ThyssenKrupp expects adjusted EBIT in themid three-digit million euro range, with adjusted EBIT showing amoderate increase in the second half of the current fiscal yearcompared with the first half. In the materials operations, SteelEurope's earnings are expected to come in at the level of the firsthalf with volumes and prices influenced by continuing intensecompetition, while earnings at Materials Services should be betterin the second half. At Steel Americas, the increased stability ofthe operational ramp-up will bring improvements; these will be setagainst continuing price pressure due to the market entry. In thecapital goods operations ThyssenKrupp expects earningscontributions to improve at Plant Technology and hold steady atElevator Technology. In the more cyclical Components Technologybusiness, the good operating levels should continue into the secondfiscal half. The earnings contributions from Marine Systems willnormalize. The full interim report is available in German and English forviewing online and downloading at . At ThyssenKrupp 170,000 employees in around 80 countries work withpassion and expertise to develop solutions for sustainableprogress. Their skills and commitment are the basis of our success.In fiscal year 2010/2011 ThyssenKrupp generated sales of €49billion. For us, innovations and technical progress are key factors inmanaging global growth and using finite resources in a sustainableway. With our engineering expertise in the areas of"Material", "Mechanical" and "Plant",we enable our customers to gain an edge in the global market andmanufacture innovative products in a cost- and resource-efficientway. Last Updated ( Wednesday, 16 May 2012 ). The e-commerce company in China offers quality products such as Wire Netting Fence Manufacturer , Stamping Metal Parts Manufacturer, and more. For more , please visit Wire Mesh Cable Tray today!
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