Thyssenkrupp with continued strong momentum in 2nd quarter 2020/2021

by David Fleschen

Thyssenkrupp was able to build on its good 1st-quarter performance in the 2nd quarter of the current fiscal year 2020/2021. The group’s order intake was up 14 percent against the comparable prior-year period at €8.6 billion. Sales in the 2nd quarter also increased by 4 percent to €8.6 billion (prior year: €8.2 billion). Adjusted EBIT came to €220 million, up significantly from the prior-year figure of €(279) million. Almost all segments contributed to this earnings improvement. Positive effects from the restructuring and efficiency measures supported this growth. In light of the good 1st half performance, thyssenkrupp has raised its forecast for the current fiscal year for both sales and earnings.

Martina Merz, CEO of Thyssenkrupp, commented: “We made up more ground in the 2nd quarter. On the one hand we were helped by the recovery in many of our markets. On the other, our performance measures are having the planned effect. That’s good and gives us confidence. But we also know that we still have a lot of work to do. So we’re not sitting back. The realignment of thyssenkrupp remains a journey of many small steps – and we’re taking those steps.”

At Materials Services order intake increased by 9 percent in the 2nd quarter, while sales were down slightly by 3 percent year-on-year. At €126 million, adjusted EBIT was significantly higher than a year earlier (€29 million). Key factors here were the increase in finished and stainless steel prices caused by the materials shortage and also the effects of the systematic implementation of the transformation: As part of the ongoing network optimization, since 2019 the segment has reduced the number of logistics sites by 39, including five in the reporting quarter. As a result, productivity (warehouse sales per employee) increased significantly. As a further element of thesite network optimization, in April Materials Services opened a new logistics center in Rotenburg, which with its high degree of automation and digitization will further increase the company’s efficiency.

Source and Photo: Thyssenkrupp

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