Overview of key figures for the 1st
half of 2018/2019
• Sales increased by 2 percent to € 20.4 billion. In terms of sales, all
businesses except Materials Services and Steel Europe contributed to the
increase in the 1st half. The main growth driver was the elevator
business in the USA and Europe.
• Order intake improved by 4 percent to €20.5 billion. Elevator
Technology again achieved record orders of €4.1 billion resulting from
several major projects. Plant construction was able to book orders
primarily in chemical plant construction and mining, while Components
Technology recorded growth primarily in industrial components. The
Marine business was slightly below the prior-year level, Materials
Services at the prior-year level and Steel Europe above the prior-year
level.
Adjusted EBIT fell from €943 million
to €685 million
The economic downturn had a particularly negative impact on the
operating results of Components Technology. Earnings at Elevator
Technology were lower than previous year due to higher material costs.
Industrial Solutions recorded lower margins on projects that are
currently being implemented. Marine Systems remained stable at
break-even, while Materials Services was unable to maintain its
prior-year earnings level, mainly due to declining prices. In the steel
sector, the historic low tide of the river Rhine, lower demand from the
automotive industry and the new collective agreement had a negative
impact on earnings.
Net income for the period amounted to € 59 million (previous year € 343
million). In addition to the operating performance, an increase in the
provision formed at the end of the last financial year for risks from
cartel proceedings to the amount of the expected fine of slightly more
than € 100 million had an impact there. After deduction of minority
interests, net income amounted to € 36 million (previous year € 320
million); earnings per share amounted to € 0.06 (previous year € 0.51).
Free cash flow before M&A was clearly negative at € -2.5 billion
(previous year € -1.4 billion).
The main reason for the cash outflow was a seasonal increase in net
working capital in the 1st quarter, particularly at Materials Services
and Steel Europe. In the 2nd quarter, thyssenkrupp generated a positive
cash inflow of €23 million, significantly higher than the previous
quarter (€-2.5 billion).
Forecast financial year 2018/2019
The Group anticipates an adjusted EBIT of € 1.1 to 1.2 billion. The
comparable prior-year figure was €1.4 billion.
Free cash flow before M&A is expected to remain overall at a negative
high level 3-digit million euro range (previous year: -134 million €).
This will reflect the effects of the economic slowdown, the impact on
net working capital of the materials businesses and the increased net
working capital in the components businesses due to the ramp-up of the
new plants. The development will also depend on the order intake and
payment profiles of individual major projects at Marine Systems. An
additional burden could result from the payment of the expected cartel
fine.
Thyssenkrupp expects the net income to be negative. This includes
restructuring expenses for future performance improvements, the
provision for the near-term, final and mutually agreed conclusion of the
cartel proceedings for heavy plate with the Federal Cartel Office
(Bundeskartellamt) as well as expenses for the preparation of the IPO of
the elevator business.
Thyssenkrupp in figures –
overview of key performance indicators
|
|
Full Group |
Group–continuing operations |
|
1st half ended March 31, 2018 |
1st half ended March 31, 2019 |
Change |
Change % |
1st half ended March 31, 2018 |
1st half ended March 31, 2019 |
Change |
Change % |
Order intake |
million € |
19,617 |
20,471 |
854 |
4 |
15,847 |
16,494 |
647 |
4 |
Net sales |
million € |
19,984 |
20,374 |
390 |
2 |
16,169 |
16,596 |
428 |
3 |
EBIT3) |
million € |
854 |
442 |
-412 |
-48 |
462 |
316 |
-146 |
-32 |
EBIT margin |
% |
4.3 |
2.2 |
-2.1 |
-49 |
2.9 |
1.9 |
-1 |
-33 |
Adjusted EBIT3) |
million € |
943 |
685 |
-257 |
-27 |
549 |
380 |
-169 |
-31 |
Adjusted EBIT margin |
% |
4.7 |
3.4 |
-1.4 |
-29 |
3.4 |
2.3 |
-1.1 |
-33 |
Income/(loss) before tax |
million € |
655 |
273 |
-382 |
-58 |
302 |
180 |
-121 |
-40 |
Net income (loss) or income (loss) net of tax |
million € |
343 |
59 |
-284 |
-83 |
102 |
46 |
-56 |
-55 |
attributable to thyssenkrupp AG's shareholders |
million € |
320 |
36 |
-284 |
-89 |
80 |
28 |
-52 |
-65 |
Earnings per share (EPS) |
€ |
0.51 |
0.06 |
-0.46 |
-89 |
0.13 |
0.04 |
-0.09 |
-69 |
Operating cash flows |
million € |
-857 |
-1,927 |
-1,070 |
-- |
-854 |
-1,214 |
-360 |
-42 |
Cash flow for investments |
million € |
-561 |
-580 |
-19 |
-3 |
-386 |
-371 |
15 |
4 |
Cash flow from divestments |
million € |
44 |
52 |
8 |
19 |
32 |
40 |
8 |
23 |
Free cash flow4) |
million € |
-1,375 |
-2,455 |
-1,080 |
-79 |
-1,208 |
-1,545 |
-337 |
-28 |
Free cash flow before M & A4) |
million € |
-1,381 |
-2,454 |
-1,073 |
-78 |
-1,215 |
-1,544 |
-329 |
-27 |
Net financial debt (March 31) |
million € |
3,546 |
4,834 |
1,288 |
36 |
|
|
|
|
Total equity (March 31) |
million € |
3,333 |
3,106 |
-227 |
-7 |
|
|
|
|
Gearing (March 31) |
% |
106.4 |
155.7 |
49.3 |
46 |
|
|
|
|
Employees (March 31) |
|
159,693 |
161,153 |
1,460 |
1 |
|
|
|
|
|
|
Full Group |
Group–continuing operations |
|
2nd quarter ended March 31, 2018 |
2nd quarter ended March 31, 2019 |
Change |
Change % |
2nd quarter ended March 31, 2018 |
2nd quarter ended March 31, 2019 |
Change |
Change % |
Order intake |
million € |
10,219 |
10,360 |
141 |
1 |
8,156 |
8,363 |
206 |
3 |
Net sales |
million € |
10,442 |
10,638 |
196 |
2 |
8,443 |
8,654 |
210 |
2 |
EBIT3) |
million € |
428 |
145 |
-283 |
-66 |
226 |
174 |
-52 |
-23 |
EBIT margin |
% |
4.1 |
1.4 |
-2.7 |
-67 |
2.7 |
2 |
-0.7 |
-25 |
Adjusted EBIT3) |
million € |
495 |
353 |
-142 |
-29 |
283 |
212 |
-72 |
-25 |
Adjusted EBIT margin |
% |
4.7 |
3.3 |
-1.4 |
-30 |
3.4 |
2.4 |
-0.9 |
-27 |
Income/(loss) before tax |
million € |
333 |
58 |
-275 |
-82 |
150 |
103 |
-47 |
-31 |
Net income (loss) or income (loss) net of tax |
million € |
250 |
-86 |
-335 |
-- |
125 |
-12 |
-137 |
-- |
attributable to thyssenkrupp AG's shareholders |
million € |
240 |
-99 |
-339 |
-- |
117 |
-23 |
-140 |
-- |
Earnings per share (EPS) |
€ |
0.38 |
-0.16 |
-0.54 |
-- |
0.19 |
-0.04 |
-0.23 |
-- |
Operating cash flows |
million € |
419 |
319 |
-101 |
-24 |
48 |
271 |
224 |
470 |
Cash flow for investments |
million € |
-272 |
-323 |
-52 |
-19 |
-187 |
-201 |
-14 |
-7 |
Cash flow from divestments |
million € |
13 |
27 |
13 |
100 |
14 |
26 |
12 |
80 |
Free cash flow4) |
million € |
161 |
22 |
-139 |
-86 |
-125 |
96 |
221 |
++ |
Free cash flow before M & A4) |
million € |
168 |
23 |
-145 |
-86 |
-118 |
97 |
215 |
++ |
Net financial debt (March 31) |
million € |
3,546 |
4,834 |
1,288 |
36 |
|
|
|
|
Total equity (March 31) |
million € |
3,333 |
3,106 |
-227 |
-7 |
|
|
|
|
Gearing (March 31) |
% |
106.4 |
155.7 |
49.3 |
46 |
|
|
|
|
Employees (March 31) |
|
159,693 |
161,153 |
1,460 |
1 |
|
|
|
|
|
Order intake million € |
Net sales million € |
EBIT million € |
Adjusted EBIT million € |
Employees |
|
1st half ended March 31, 2018 |
1st half ended March 31, 2019 |
1st half ended March 31, 2018 |
1st half ended March 31, 2019 |
1st half ended March 31, 2018 |
1st half ended March 31, 2019 |
1st half ended March 31, 2018 |
1st half ended March 31, 2019 |
31-Mar-18 |
31-Mar-19 |
Components Technology |
3,243 |
3,435 |
3,210 |
3,306 |
162 |
104 |
167 |
118 |
33,768 |
34,780 |
Elevator Technology |
3,833 |
4,137 |
3,599 |
3,793 |
388 |
368 |
424 |
402 |
52,779 |
52,915 |
Industrial Solutions |
1,458 |
1,680 |
1,791 |
1,790 |
-23 |
-60 |
-1 |
-57 |
15,916 |
15,661 |
Marine Systems |
312 |
240 |
547 |
795 |
-11 |
0 |
-10 |
0 |
5,820 |
5,859 |
Materials Services |
7,139 |
7,191 |
7,177 |
7,084 |
139 |
72 |
151 |
75 |
20,107 |
20,302 |
Steel Europe |
4,555 |
4,792 |
4,569 |
4,481 |
359 |
-84 |
359 |
76 |
27,255 |
27,882 |
Corporate |
169 |
88 |
171 |
134 |
-168 |
-175 |
-156 |
-149 |
4,048 |
3,754 |
Consolidation |
-1,093 |
-1,093 |
-1,080 |
-1,009 |
8 |
217 |
8 |
220 |
0 |
0 |
Full Group |
19,617 |
20,471 |
19,984 |
20,374 |
854 |
442 |
943 |
685 |
159,693 |
161,153 |
Discontinued steel operations |
3,770 |
3,977 |
3,816 |
3,778 |
391 |
125 |
394 |
306 |
28,913 |
29,638 |
Group continuing operations |
15,847 |
16,494 |
16,169 |
16,596 |
462 |
316 |
549 |
380 |
130,780 |
131,515 |
|
Order intake million € |
Net sales million € |
EBIT million € |
Adjusted EBIT million € |
|
2nd quarter ended March 31, 2018 |
2nd quarter ended March 31, 2019 |
2nd quarter ended March 31, 2018 |
2nd quarter ended March 31, 2019 |
2nd quarter ended March 31, 2018 |
2nd quarter ended March 31, 2019 |
2nd quarter ended March 31, 2018 |
2nd quarter ended March 31, 2019 |
Components Technology |
1,665 |
1,781 |
1,646 |
1,726 |
86 |
59 |
90 |
69 |
Elevator Technology |
1,873 |
1,995 |
1,754 |
1,869 |
186 |
169 |
204 |
198 |
Industrial Solutions |
670 |
740 |
956 |
950 |
-33 |
-30 |
-14 |
-33 |
Marine Systems |
255 |
133 |
291 |
497 |
-11 |
0 |
-9 |
0 |
Materials Services |
3,776 |
3,821 |
3,890 |
3,696 |
90 |
51 |
100 |
53 |
Steel Europe |
2,484 |
2,451 |
2,388 |
2,350 |
196 |
-118 |
197 |
37 |
Corporate |
78 |
37 |
78 |
70 |
-97 |
-84 |
-81 |
-72 |
Consolidation |
-583 |
-598 |
-562 |
-521 |
9 |
97 |
9 |
100 |
Full Group |
10,219 |
10,360 |
10,442 |
10,638 |
428 |
145 |
495 |
353 |
Discontinued steel operations |
2,062 |
1,998 |
1,998 |
1,984 |
202 |
-29 |
211 |
141 |
Group continuing operations |
8,156 |
8,363 |
8,443 |
8,654 |
226 |
174 |
283 |
212 |
Source from
Thyssenkrupp |