Aug. 14 (Bloomberg) -- ThyssenKrupp AG reported quarterly earnings that beat analyst estimates after Germany’s largest steelmaker posted a profit at its previously loss-making Steel Americas unit.
Adjusted earnings before interest and taxes from continuing operations almost tripled to 398 million euros ($532 million) in the fiscal third quarter ended June 30, the Essen-based company said today in a statement. That beat the 363.6 million euro average of 16 estimates compiled by Bloomberg. Sales rose 8.3 percent to 10.7 billion euros.
After losing almost 14 billion euros in market value since 2008, ThyssenKrupp announced plans last year to raise funds by selling shares and an unprofitable U.S. plant in its Steel Americas unit. The company, which in May reported its first companywide quarterly net income in almost two years, is expanding its elevator, industrial and components divisions amid weak steel prices.
“The times of record losses are over,” Hans-Peter Wodniok, an analyst at Fairesearch GmbH & Co. KG, said by phone from Kronberg near Frankfurt. “The adjusted Ebit is good, exceeded my estimates by 100 million euros.”
ThyssenKrupp rose 0.4 percent to 21.045 euros by the close in Frankfurt, the highest this month.
“Our strategy is working, and our operating measures are clearly taking effect,” Chief Executive Officer Heinrich Hiesinger said in the statement.
Net income in the quarter was 39 million euros, compared with a net loss of 395 million euros a year earlier.
The Steel Americas division reported its first positive adjusted Ebit, 16 million euros, compared with a loss of 193 million euros a year earlier. Adjusted earnings at the Steel Europe unit increased 66 percent from a year earlier to 103 million euros.
ThyssenKrupp slightly increased its fiscal-year forecast, saying adjusted Ebit in the 12 months through September will double, from 586 million euros a year earlier. In May, it said that measure of earnings will “almost double.” The company repeated it expects to achieve break-even to slightly positive net income for the fiscal year.
ArcelorMittal, the world’s biggest steelmaker, said earlier this month that demand for the metal in Europe may expand as much as 4 percent.
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