ThyssenKrupp Posts Higher-Than-Expected Earnings in Second Quarter

ThyssenKrupp Posts Higher-Than-Expected Earnings in Second Quarter

German multinational conglomerate corporation group ThyssenKrupp raised its full year forecast after reporting higher-than-expected earnings in the second quarter.

The German heavy industry giant that runs its year from October to September, said in a statement, "Against the background of the progress made in operating performance and the generally stabilizing economic conditions, management has specified and raised its forecast for the full year 2014/2015".

The group said it now expects that the underlying or operating profit would increase significantly to 1.6-1.7 billion euros ($1.8-1.9 billion).

With the exception of its steel business in the Americas, all business areas will generate significant positive contributions.

Group sales were expected to grow by a single-digit percentage rate and management likewise expects to have a significant improvement in net income from 195 million euros last year.

In the second quarter alone, the operating profit of the company jumped by 32 % to 405 million euros, beating analysts' expectations.

Net profit of the company, however, tumbled 82 % to 48 million euros as a result of one-off charges related to the sale of its stainless steel unit VDM.

The company sales in the second-quarter grew by 7.0% to .995 billion euros.

Furthermore, the company said it had agreed to buy a stake in a Chinese sheet steel company to strengthen its position with carmakers in southwestern China.

ThyssenKrupp said on Tuesday it was acquiring a 12.5 % direct and a 37.5 % indirect stake in a unit of China's Angang group which is building a hot-dip coating plant in Chongqing.

The company said that this agreement will enable ThyssenKrupp to further strengthen its position as an important supplier to the fast-growing Chinese auto industry, particularly in the premium segment.

Popular Stories

Overall childhood ‘asthma epidemic’ levels off in U.S.

The overall ‘asthma epidemic’ among children has... Read More

‘UC Quits’ Working to Help California Smokers Get Rid Of Smoking

As New Year is approaching, people have already... Read More

Scientists begin Stem Cell research to find cure for Alzheimer’s

Alzheimer’s disease, the commonest cause of... Read More

New House Bill to Restrict First-Time Opioid Prescriptions

Cases of opioid abuse have been increasing and... Read More

Comcast installs DOCSIS 3.1 modem on customer-facing network in Philadelphia

In an announcement made on December 22, cable giant... Read More