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In the first 9 months of the 2012/2013 fiscal year (October 1, 2012 – June 30, 2013) ThyssenKrupp achieved order intake from continuing operations of €28.3 billion, down 8% year-on-year. There were once more significant gains at Elevator Technology and Industrial Solutions.
At the company’s Components Technology arm new orders were down year-on-year in the first 9 months due to lower demand and disposals, but in the 3rd quarter were higher again quarter-on-quarter. Low volumes and prices weighed on business at Steel Europe and Materials Services.
In a statement the company argued that the “order backlog from continuing operations at the end of the period was 11% higher year-on-year at around €24 billion and secures a high level of capacity utilization and planning certainty in project business. Sales from continuing operations in the first 9 months 2012/2013 decreased year-on-year by 9% to €27.4 billion”.
Adjusted EBIT from continuing operations came to €802 million in the first 9 months of the current fiscal year, compared with €1,117 million in the prior-year period. The 3rd quarter contributed €332 million to this, significantly higher than the €241 million of the previous quarter and fully in line with the full-year forecast. All business areas made strong positive contributions to adjusted EBIT both over the first 9 months and in the 3rd quarter. With the exception of Industrial Solutions all business areas improved their earnings quarter-on-quarter.
The share of the capital goods operations in the first 9 months was €1,149 million, significantly higher than the €261 million contributed by the materials operations. Earnings net of taxes amounted to €(262) million, of which €(298) million attributable to the shareholders of ThyssenKrupp AG.
Free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, in the continuing operations improved by around €1.4 billion to €1,126 million in the first 9 months. Even without the cash inflows from divestments, free cash flow increased by around €1.1 billion to a positive value of €97 million. The 3rd quarter contributed €375 million to this, a further quarter-on-quarter improvement. Free cash flow for the full Group improved by around €2.1 billion to €510 million. As a result, ThyssenKrupp also made progress with reducing its net financial debt. While remaining virtually unchanged quarter-on-quarter, net financial debt decreased year-on-year by around €0.5 billion to €5,326 million (June 30, 2012: €5,800 million) and was therefore also lower than at September 30, 2012 (€5,800 million).
Dr. Heinrich Hiesinger, Executive Board Chairman of ThyssenKrupp AG: argued that the company’s operating income and free cash flow showed “a clearly positive trend.
“The strong gains in order intake in our capital goods businesses – with new records at Elevator Technology – prove that we are succeeding with the implementation of the Strategic Way Forward. The measures under the corporate program “impact 2015″ and the processes we have initiated to change our corporate culture will further improve our performance.”
