ThyssenKrupp AG reports Q1 results

ThyssenKrupp AG reports Q1 resultsGerman steelmaker ThyssenKrupp AG reported a profit in the 1st quarter of fiscal year 2009/2010 with Net income at 164 million euros against 168 million euros reported in corresponding quarter last year.

The factors which led the improvement were higher demand, better prices in some areas, higher productivity and continuing strict cost and capital spending controls. The results beat the market expectations with rise in shipped volumes.

Executive Board Chairman Dr. Ekkehard Schulz said, “The majority of the business areas generated a profit in the first quarter. This strengthens our confidence that we will reach our earnings goal in the current fiscal year – also thanks to the rigorous implementation of our cost-reduction and restructuring programs.”

The Group anticipates that sales will stabilize in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in large part to the cost-cutting programs introduced.

Company reported that order intake dropped year-on-year by 28% to €9.3 billion and sales decreased year-on-year by 19% to €9.4 billion but orders improved noticeably quarter-on-quarter with a rise of around €1.8 billion.