Germany’s thyssenkrupp remains optimistic about the positive impact of restructuring its steel business, but it expects the growth to be reflected only by April 2022.
The company’s chief financial officer Klaus Keysberg indicated while reporting the conglomerate’s Q3 FY2021 (ended June 30, 2021) earnings that while order intakes had risen considerably in the quarter, the lag in increased raw material and finished steel prices on its revenue was being felt due to the company’s long-term contracts and expenses related to the relining of its Duisburg blast furnace 1 in Q3.
Martina Merz, president, and chief executive officer added that the recent sale of thyssenkrupp’s infrastructure and mining business has also helped the company refocus its portfolio to its core businesses. Moreover, the company anticipates keeping its FY2021 forecast for all its businesses, though sales are not likely to reach pre-pandemic levels.
In Q3 FY2021 (ended June 30, 2021), thyssenkrupp’s consolidated sales increased by 51pc to €8.7bn against the same quarter last year.
Steel Europe’s orders increased by €1.6bn to €2.5bn and sales by €1bn to €2.4bn annually during the quarter. Adjusted EBIT improved substantially to €19mn in the same period. The increased revenue was attributed to higher capacity utilization, a successful restructuring program, and the implementation of the Steel Strategy 20-30.
Materials Services’ order intake and sales increased by €1.6bn and €1.4bn, respectively. The segment’s adjusted EBIT reached a new record of €232mn, having opened a new logistics center in Rotenburg.
Industrial Components increased order intake and sales by 40pc while its adjusted EBIT was €68mn higher than Q3 FY2020. Automotive Technology posted 53pc and 50pc third quarter increases in order intake and sales, respectively, though the ongoing shortage in semiconductor chips is expected to continue to impact this segment.
In the Multi Tracks segment, stainless steel profited from the growing pace of market growth and increased order intake and sales; springs & stabilizers also saw increased demand and sales growth.
thyssenkrupp posted a Q3 FY2021 consolidated order intake of €8.8bn against €4.8bn posted for the prior-year period. Its adjusted EBIT of €266mn was up significantly from €220mn in the same period.