LONDON German steel
producer and industrial manufacturer ThyssenKrupp AG reported a
net loss attributable to its shareholders of 656 million
($843.6 million) for the quarter ending March 31, the company
said May 15.
The company blamed the loss in
its financial second quarter on impairment costs related to the
continuing sale of its Steel Americas division, which has just
taken a further write-down of 683 million ($887 million),
The steelmaker reiterated that
negotiations on the sale were continuing and confirmed that it
"remained focused on signing a deal for Steel Americas
"The disposal process for the
two plants of Steel Americas is ... running to plan," chief
executive officer and executive board chairman Heinrich
The Steel Americas unit, which
is now listed as a discontinued operation, saw order intake
drop 19 percent year on year to 509 million ($655.2
million) and sales fall 8 percent to 501 million ($644.3
million), the company said.
before interest, taxes, depreciation and amortization (Ebitda)
for continuing operations in the January to March period fell
by 58 percent to 240 million ($309 million) from
571 million in the same period last year due to the
effects of the difficult economic climate, the group said.
Net sales from continuing
operations in the companys second fiscal quarter amounted
to 9.1 billion ($11.7 billion), an 11-percent drop year
on year, partially due to declines in the components and
ThyssenKrupps order intake
also fell by 13 percent year on year to 9.68 billion
($12.5 billion) because of lower demand as well as divestments
in the components and materials segments, while low volumes and
prices weighed down orders in the Steel Europe and global
materials trading divisions.
Looking at the different
divisions, ThyssenKrupps materials services business had
a poor January through March period as earnings before interest
and taxes (Ebit) swung to a loss of 157 million ($201.9
million) compared with a profit of 74 million in the
corresponding period in 2012.
The poor performance was due to
the economic slowdown across all regions with the exception of
North America, the group said.
Steel Europe also posted
negative Ebit of 10 million ($12.9 million) in the period
compared with positive earnings of 21 million in the
first three months of 2012.
Lower average selling prices
were mostly to blame for the challenging quarter, the company
"Demand for metallurgical raw
materials remained weak as a result of numerous production
cutbacks and stoppages in the steel industry," ThyssenKrupp
However, the company said it is
still optimistic in the longer term.
"Despite a persistently difficult economic environment, we
are on track to meet our operating targets for the full year,"
A version of this article
was first published by AMM sister publication Steel