Thyssen Krupp’s Spectacular Economic Recovery
The economic recovery of Germany’s largest steel group gets really good; Thyssen Krupp managed to jump back in the black. However, the steel company had to afford even their contribution.
With a tough austerity program the Group succeeded, after the economic crisis to get back on track. ThyssenKrupp cut its costs in fiscal year 2009/10, which ran until the end of September, up 1.5 billion euros. Sun drove the steel giant 1.1 billion euros a profit after a year were still 2.4 billion as deficit in the balance sheet.
The economic recovery was wearing her rest will help, thanks to significant increases in the steel business, sales rose last year by five percent to 43 billion euros. The good deals will also be of benefit shareholders, ThyssenKrupp to raise the dividend to 45 cents per share. Last year 30 cents was paid.
ThyssenKrupp stands out from competitors
It pays off now that ThyssenKrupp focused on the booming automobile industry and mechanical engineering industries. In addition, the Essenes benefited from its focus on Germany and neighboring countries. While competitors such as Arcelor Mittal and suffer Salzgitter from weak economic development in Southern Europe and the slow development of the construction industry, felt the Ruhr group is not practical. Thyssen was able put away the sharp rise in commodity prices are good.
Also in the technology sector, the global economic recovery made a positive impact. However, the stainless steel business is still in the red. The worldwide market is suffering from overcapacity.
Order books are full
While ThyssenKrupp’s from his pre-crisis far from over. 2007/08, the Group redeemed € 53.4 billion and net earned 2.3 billion euros. Such a level, the outgoing chief executive Ekkehard Schulz will take some years back to be realistic. However, Schulz is optimistic for the future: “The group is to return to the long-term growth path.”
The full order books well calm, and orders increased 15 percent to 41.25 billion euros. We’ve created a good basis for further growth, says Schulz, who gives in January, the management of the Group after ten years at the former Siemens manager Heinrich Hiesinger. The 69-year-old Schulz will join the Supervisory Board.
More on austerity
For the just launched the financial year, the manager was cautiously optimistic. Schulz said that sales growth of 10 to 15 percent. Adjusted for special factors, earnings before interest and taxes are expected to reach two billion euros to 1.2 billion euros last year.
The group wants to tighten but despite the quickening operations the belt even tighter. In addition to efficiency gains and cost reductions were even more sales of divisions. In addition, the operation of the new steel plants in Brazil and the United States run up faster.
Schulz was the company that manufactures in addition to steel and auto parts, elevators or U-boats, missed in the crisis a rigid austerity program. Some shops, such as in commercial shipbuilding, it had sold more sales are planned.11