Thyssenkrupp comes thanks to an increasing demand in the Automotive industry and better results in the steel division slowly back on track: In the first quarter of its 2020/21 financial year, the group was operating in the black, as the company announced on Wednesday. Thyssenkrupp raised its forecast for the full year, but the bottom line is that a high loss is still expected – albeit a little less than recently feared. Thyssenkrupp’s shares rose 5 percent before the market.
“We are currently feeling signs of an economic recovery and our measures to increase performance are beginning to bear fruit,” said CEO Martina Merz (58). Despite the black numbers, the company is still not over the hill. “That’s why we’re continuing to speed up the renovation.”
British competitor Liberty Steel wants to take over Thyssenkrupp Steel Europe. Group boss Merz is also toying with a spin-off. The supervisory board is expected to make a decision in mid-March. Head of Steel Bernhard Osburg is driving the restructuring forward. “It must be clear to everyone involved that we must therefore also talk about further personnel and cost measures if we do not want to jeopardize what has been achieved and what has been agreed.”
Operational black numbers, further staff cuts threaten
In spring 2020, the company agreed to cut 3,000 jobs with the employee representatives. In a “future collective bargaining agreement”, the 27,000 or so steel cookers received extensive job and location guarantees in return. The North Rhine-Westphalian IG Metall boss Knut Giesler had emphasized in a Reuters interview that this contract would also have to be taken over by a new owner.
The already ailing Ruhr group came under even more pressure from the Corona crisis. Now demand from customers such as the automotive and construction industries picked up again. In the first quarter, Thyssenkrupp achieved earnings before interest and taxes (EBIT) of 78 million euros, excluding the sold elevator division, in its continuing operations. In the same period last year, there was a loss of 185 million euros on the books. For the year as a whole, the Management Board expects adjusted EBIT to be almost balanced, having previously expected a loss in the mid three-digit million range.
The steel division made available by Merz benefited from the fact that the steel service centers replenished their warehouses. Automotive customers picked up again and demand in the home appliance and construction industries also ensured a recovery. Steel Europe brought in an operating profit of 20 million euros, Automotive was able to more than double its result to 109 million euros.