ThyssenKrupp AG / Key word(s): Final Results
02.12.2011 10:36
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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THYSSENKRUPP IN FISCAL YEAR 2010/2011
GROWTH TARGETS ACHIEVED - ORDER INTAKE UP 22 PERCENT, SALES 15 PERCENT -
ADJUSTED EBIT UP 42 PERCENT TO EUR1.762 BILLION - IMPAIRMENT CHARGES OF
EUR2.9 BILLION AT STEEL AMERICAS AND STAINLESS GLOBAL (INOXUM)
The Supervisory Board of ThyssenKrupp AG today approved the annual
financial statements for fiscal year 2010/2011 as prepared by the Executive
Board of the company. In connection with the consolidated financial
statements prepared by the Executive Board on November 29, 2011, the Group
recorded impairment charges of EUR2.1 billion at Steel Americas and EUR800
million at Inoxum (formerly Stainless Global).
Operating performance: Growth targets achieved
ThyssenKrupp achieved its growth targets in the past fiscal year. Order
intake increased by 22 percent from EUR41.250 billion to EUR50.247 billion
[continuing operations, without Inoxum: up 22 percent from EUR37.013
billion to EUR45.118 billion] (Notice: Inoxum is classified under
'discontinued operations' in the annual financial statements of
ThyssenKrupp AG. This effect reduces the sales and order intake of the
continuing operations.) The Group's sales rose by 15 percent from EUR42.621
billion to EUR49.092 billion [continuing operations, without Inoxum: up 15
percent from EUR37.711 billion to EUR43.356 billion]. Demand was
particularly strong for flat carbon steel, components for the auto
industry, and in naval shipbuilding.
The Group's operating performance in the reporting year was positive. All
business areas except Steel Americas contributed to this. The Group's
adjusted EBIT increased by 42 percent from EUR1.241 billion to EUR1.762
billion [continuing operations, without Inoxum: by 36 percent from EUR1.293
billion to EUR1.762 billion], despite operating losses of EUR1.071 billion
at Steel Americas.
Five business areas increased their earnings substantially year-on-year.
The Elevator business held steady at a high level. The biggest earnings
contribution, EUR1.133 billion, came from the Steel Europe business area.
The Technologies business areas contributed by far the dominant share, with
total earnings of EUR1.863 billion.
The impairment charges result in negative reported EBIT of EUR(988) million
compared with EUR1.346 billion in the prior-year period [continuing
operations, without Inoxum: EUR(188) million compared with EUR1.398 billion
in the prior-year period] and a net loss in the consolidated financial
statements of EUR(1.783) billion compared with a net profit of EUR927
million in fiscal year 2009/2010 [continuing operations, without Inoxum:
EUR(954) million compared with EUR1.020 billion in 2009/2010].
Net financial debt, which stood at EUR3.578 billion at the end of fiscal
2010/2011, showed a slight improvement from the prior-year period (EUR3.780
billion). One factor in this, alongside the sale of treasury stock, was
that, as predicted, the Group generated a positive free cash flow of
EUR1.037 billion in the fourth quarter.
After carefully weighing all the circumstances, the Executive Board and
Supervisory Board of have decided to maintain the policy of dividend
continuity. The Executive Board and Supervisory Board will therefore
propose to the Annual General Meeting the payment of a dividend of EUR0.45
per share for the past fiscal year, as in the prior year.
Impairment
Impairment testing of the assets of ThyssenKrupp showed that the book
values of assets in the Steel Americas business area and the former
Stainless Global business area, now Inoxum, were no longer in line with
market conditions. The necessary impairment charges total EUR2.9 billion.
The main reasons for the impairment at Steel Americas are:
1. Cost overruns on the construction of the plant in Brazil and the
delayed ramp-up, particularly of the plant in Brazil. These
additional costs cannot be offset in the short term.
2. The relative strength of the Brazilian currency, both now and
expected in the near future, which is adversely affecting the cost
position, particularly in the ramp-up phase, and an increase in the
cost of capital factor.
3. The renewed weakness of the markets in the USA and Europe, which is
hampering market entry for the products of the Steel Americas
business area.
ThyssenKrupp remains convinced that the Americas market offers great
prospects for its premium steel products and that the company can
differentiate itself successfully from the competition there as in Europe.
The commercial ramp-up of the plants in Brazil and the USA and the
resultant cost optimization are important prerequisites for leveraging the
value potential of the Americas for the Group. For the current fiscal year,
a significant improvement is not expected until the second half with the
start-up of the third coke oven battery and an improvement in input
material consumption rates.
The total impairment charge at Inoxum is EUR800 million. Of this, EUR290
million relates to goodwill impairment and EUR510 million to a fair value
adjustment in connection with the carve-out of the entity. There are two
main reasons for the impairment charges at Inoxum:
1. The capital market is demanding high risk premiums in the valuation
of stainless steel producers. This is a consequence of the
financial crisis and the high risk aversion of investors.
2. High discounts are being applied to the valuation of stainless
steel assets due to the unsolved structural problems on the
stainless steel market.
ThyssenKrupp will report on the approval of the annual financial statements
in a press conference after the Supervisory Board meeting at 2:00 p.m. The
press conference will be streamed live on the internet
(www.thyssenkrupp.com). A conference call for analysts and investors will
he held at 4:00 p.m.
The Annual Report is now available for download at www.thyssenkrupp.com
Contact:
ThyssenKrupp AG
Dr. Claus Ehrenbeck
Investor Relations
Phone: +49 (201) 844-536464
ThyssenKrupp AG
Alexander Wilke
Corporate Communications
Phone: +49 (201) 844-536043
02.12.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ThyssenKrupp AG
ThyssenKrupp Allee 1
45143 Essen
Germany
Phone: +49 (0)201 844-0
Fax: +49 (0)201 844-536000
E-mail: info@thyssenkrupp.com
Internet: www.thyssenkrupp.com
ISIN: DE0007500001
WKN: 750000
Indices: DAX
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
Weitere Informationen im Internet unter Investor Relations: Anleihen / Creditor
Relations, Further information can be found on our website under Investor
Relations: Bonds / Creditor Relations
End of Announcement DGAP News-Service
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DGAP-Adhoc: ThyssenKrupp AG: THYSSENKRUPP IN FISCAL YEAR 2010/2011
| Source: EQS Group AG