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ThyssenKrupp Has First Quarterly Profit in Almost 2 Years

ThyssenKrupp AG (TKA), Germany’s largest steelmaker, reported its first quarterly profit in almost two years after selling assets and cutting costs as it focuses on its non-steel businesses.

Net income for the three months through March was 269 million euros ($370 million), or 48 cents a share, compared with a loss of 129 million euros, or 25 cents, a year earlier, the Essen, Germany-based company said today in a statement. The company’s last reported profit was for the third fiscal quarter of 2012.

“This shows that our efficiency program impact is working and our culture change is really bringing about a stronger performance ambition,” Chief Executive Officer Heinrich Hiesinger said in the statement. Full-year profit excluding one-time items will be “almost double” last year’s 586 million euros, the company said, an increase from its prior forecast of about 1 billion euros.

ThyssenKrupp is expanding its elevator, industrial and components divisions after waning steel demand and competition from Chinese suppliers cut prices. The 203-year-old company, which has been selling or shutting units since Hiesinger took over in 2011, said in November that it would raise capital by offering stock after finding a buyer for a money-losing U.S. steel plant

Sales for the company’s fiscal second quarter climbed to 10.3 billion euros, exceeding the 9.88 billion-euro average of 14 analysts’ estimates compiled by Bloomberg. Revenue rose for each business except for Steel Europe, ThyssenKrupp said.

Earnings before interest and taxes from continuing operations rose 60 percent to 309 million euros, beating the 293.8 million-euro average of 15 estimates.

The Steel Americas division reported a narrower adjusted loss before interest and taxes of 26 million euros from 44 million euros.

ArcelorMittal, the world’s biggest steelmaker, said last week demand for the metal in Europe is growing faster than expected and may expand as much as 3 percent this year.

To contact the reporter on this story: Tino Andresen in Dusseldorf at tandresen1@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net Tina Davis, Stephen Cunningham

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