ThyssenKrupp Stock Climbs On Positive FY24 Outlook

Shares of thyssenKrupp AG were gaining more than 7 percent in the morning trading in Germany after the industrial engineering and steel company Wednesday said it expects a profit in its fiscal 2024 and higher sales. This was despite reporting a loss in fiscal 2023, compared to prior year’s profit, along with weak sales and orders amid an increasingly challenging environment.

Klaus Keysberg, CFO of thyssenkrupp, said, “We are continuing to work consistently on improving the performance of all our businesses. This will create the conditions for achieving our medium-term goals, even in a challenging environment. This means that we are seeking to achieve an adjusted EBIT margin of 4 to 6 percent at Group level, a significantly positive value for free cash flow before M&A and reliable dividend payments…”

For fiscal 2024, thyssenkrupp expects net income to increase to a positive figure in the low to mid three-digit million euro range from the prior-year loss.

For adjusted EBIT, thyssenkrupp is anticipating an increase to a figure in the high three-digit million euro range from last year.

The company expects sales to increase slightly, as expected decline at Steel Europe will be offset by significant growth at Decarbon Technologies and Marine Systems and slight sales growth at Automotive Technology.

thyssenkrupp expects macroeconomic development in the present fiscal year to be difficult overall in a challenging market environment shaped by geopolitical and trade conflicts, high inflation and rising interest rates.

Moreover, the company expects further price volatility on the sales and procurement markets and for raw materials and energy. This may result in fluctuations in the development of sales and earnings.

By 2025, thyssenkrupp aims to achieve an adjusted EBIT margin of 4 to 6 percent at Group level.

Further, the company said its Executive Board and Supervisory Board will propose to the Annual General Meeting on February 2, 2024, that a dividend of 0.15 euro per no-par share should be paid for fiscal year 2023.

For fiscal 2023, net loss was 2.0 billion euros, compared to net profit of 1.2 billion euros a year ago.

Loss per share was 3.33 euros, compared to prior year’s earnings of 1.82 euros. The latest net loss primarily was due to impairment losses of 2.1 billion euros to be made at Steel Europe.

Adjusted EBIT amounted to 703 million euros, sharply lower than last year’s 2.06 billion euros.

Sales came to 37.5 billion euros, down from 41.1 billion euros a year ago. Order intake totaled 37.1 billion euros after 44.3 billion euros a year earlier.

According to the company, sales growth at Automotive Technology could not offset the decline in sales at Materials Services and Steel Europe resulting from lower material and spot market prices.

Materials Services’ order intake and sales were below the record levels of a year earlier, due to a decline in material prices in almost all product groups.

Steel Europe reported slightly lower sales due to the decline in spot market prices, while shipment volumes were stable. Order intake increased with an increase in demand from the automotive industry and the construction sector.

In Germany, thyssenkrupp shares were trading at 7.11 euros, up 7.43 percent.

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