Wed. Oct 27th, 2021


© Reuters. PHOTO FILE: Overview of the ThyssenKrupp Steel Europe plant in Duisburg, Germany, January 7, 2020. REUTERS / Leon Kuegeler / File Photo

By Christoph Steitz and Tom Käckenhoff

FRANKFURT (Reuters) -Thyssenkrupp on Wednesday recorded a negative free cash flow of up to 1.5 billion euros ($ 1.8 billion) in its current year, citing restructuring costs as the German conglomerate tries to simplify its expansive configuration .

Shares of the steel and submarine group fell to 7.4% compared to the prospects of free cash flow before mergers and acquisitions (M&A), which is now expected to be negative 1.2-1.5 billion euros during the exercise until September.

Earlier, he had predicted that the measure would be reduced to 1 billion euros negative, from the negative 5.5 billion last year.

Thyssenkrupp (DE 🙂 is trying to streamline its structure after years of low performance. He sold his elevator division, his most profitable business, to private capital last year to try to survive, and more recently he had two smaller units.

The outlook for cash flows overshadowed operating improvements, which showed that Thyssenkrupp achieved an operating profit in its third quarter due to high material prices and car demand.

During the period April-June, adjusted earnings before interest and taxes (EBIT) reached 266 million euros, compared to losses of 693 million last year, when the pandemic took its toll on the group. .

In the steel division of Thyssenkrupp, which could be separated next year, adjusted EBIT was 19 million euros in the quarter, compared to a loss of 309 million the previous year.

“This is good, but our long-term contractual structures are causing a delay in rising commodity and steel prices that fuel our revenue and earnings,” said Chief Financial Officer Klaus Keysberg.

Long-term steel contracts mean that the evolution of the market takes about half a year before appearing in the accounts of Thyssenkrupp, separating it from colleagues such as Salzgitter, who on Wednesday recorded its pre-tax profit in the first half. of the last 13 years.

($ 1 = 0.8539 euros)

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