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.
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