ThyssenKrupp Feels Chill Of Low Steel Prices

ThyssenKrupp feels chill of low steel prices

BERLIN, (Pakistan Point News - APP - 11th Augst,2016) - Germany's largest steelmaker ThyssenKrupp said on Thursday that low prices for steel and other raw materials had weakened results in its third quarter, but confirmed its forecast for the year. Revenues at the group, which also makes lifts, submarines and car parts, fell to 9.9 billion Euros -- 12 percent lower than in April-June 2015. Operating profits as measured by EBIT fell 25 percent to 372 million euros, while net profits were down 34 percent at 130 million euros.

"Difficult conditions on raw materials markets and continuing high steel imports" had made for a tough year, the group said in a statement. Beyond steel, ThyssenKrupp is suffering through a period of low orders. Its industrial solutions division has suffered from worldwide low oil prices, with orders for its turnkey installations down 14 percent in the first nine months of this financial year. But "we are starting to see the first improvements in raw materials prices," chief executive Heinrich Hiesinger said in a statement. "We will continue to concentrate on the things we can influence ourselves. That's already proving effective," he went on, pointing to the company's restructuring and efficiency drives which it expects to boost operating profit by 850 million euros this year.