German steel giant thyssenKrupp AG (TYEKF.PK) on Thursday reported lower attributable net profit in its third quarter, while profit from continuing operations surged with higher sales. Further, the company affirmed its targets for fiscal 2017, expecting a net loss due to the sale of Brazilian steel mill CSA. Excluding this one-time effect, net income is expected to be significantly higher year-on-year.
For the third quarter, net income attributable to shareholders declined 8 percent to 120 million euros from 130 million euros last year. Earnings per share dropped to 0.21 euro from 0.23 euro a year ago.
thyssenkrupp reached agreement with Ternium to sell CSA and the signing took place in February 2017. The approval of the Brazilian competition authority CADE is not yet final. The company has reported the Steel Americas business area as a discontinued operation.
On a continuing operations basis, i.e. excluding Steel Americas, thyssenkrupp generated attributable net income of 254 million euros, significantly higher than last year’s 82 million euros.
Earnings before tax or EBT increased 12 percent from last year to 293 million euros.
In the quarter, EBIT climbed 42 percent from last year to 529 million euros and EBIT margin went up to 4.8 percent from 3.8 percent last year. Adjusted EBIT for the quarter grew 41 percent to 620 million euros, and adjusted EBIT margin improved to 5.7 percent from 4.5 percent last year.
Net sales for the period increased 11 percent to 10.93 billion euros from 9.87 billion euros last year.
The company’s order intake rose 14 percent to 10.73 billion euros from 9.40 billion euros a year ago. Order intake for the nine months climbed 16 percent to 32.67 billion euros.
thyssenkrupp CEO Heinrich Hiesinger said, “In the first nine months we received new orders worth more than €32 billion. This is our best performance since the start of the Strategic Way Forward. Particularly pleasing is that all business areas contributed to it.”
For the full year 2017, thyssenkrupp continues to expect sales growth in a high single-digit percentage range and adjusted EBIT of 1.8 billion euros. The adjusted EBIT of the continuing operations is still expected to be 1.7 billion euros. The previous year’s adjusted EBIT was 1.469 billion euros.
In Germany, ThyssenKrupp shares were trading at 26.10 euros, up 2.11 percent.
by RTT Staff Writer
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