The biggest steel manufacturer in Germany – ThyssenKrupp AG reported a small profit for the first three months of the fiscal year and reaffirmed its 2015 guidance.
According to ThyssenKrupps statement, net income over the quarter ended on December 31st amounted to €50 million, or 9 cents per share. In comparison, it posted a net loss of €65 million, or 12 cent per share, a year ago. The company also revealed a 29% increase in its adjusted earnings before interest and tax, which reached €317 million, slightly below analysts projections for about €319 million.
The Chief Financial Officer of ThyssenKrupp Guido Kerkhoff commented on the companys performance over the period: “With a weaker euro, our exports are rather stronger now. There is an increasingly positive momentum.”
ThyssenKrupps revenue rose by 11% from €9.09 billion last year to €10.04 billion, boosted by stable growth in the companys capital goods business. Orders slid 5% from €10.66 billion a year ago to €10.09 billion, mainly due to a large order in the naval ships business that caused a spike in Q1 2014 sales.
The Chief Executive Officer of the company – Mr. Heinrich Hiesinger said in a statement: “We are on the right track with the transformation of the group, while the economic environment remains uncertain and the geopolitical risks high.”
In spite of its generally satisfactory performance, a disappointment in the the Germany-based steel makers quarterly report was found on the balance sheet. ThyssenKrupps net debt increased by €535 million form a year earlier and reached €4.2 billion, attributable to an increase in net working capital that was partly due to a strike in Italy.
ThyssenKrupp AG slid 2.64% on Friday in Frankfurt to close at €23.01 per share, marking a one year change of +16.78%. The company is valued at €13.02 billion. According to the Financial Times, the 27 analysts offering 12-month price targets for ThyssenKrupp AG have a median target of €23.00, with a high estimate of €27.00 and a low estimate of €15.50. The median estimate represents a -0.02% decrease from the last price of €23.01.
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