German industrial conglomerate ThyssenKrupp on Thursday reported second-quarter net income of €167 million ($187 million), compared to a net loss of €72 million in the prior year.
The significant improvement was supported mainly by the sale of thyssenkrupp Electrical Steel India.
This was partly offset by impairment losses of around €90 million at subsidiary Steel Europe caused by the gloomy economic situation, persistently high energy costs, and planned investments in decarbonizing the business.
Quarterly net income after deducting minority interest was €155 million compared to a loss of €78 million in the prior year. Earnings per share were €0.25 compared to a loss of €0.13 per share in the previous year.
Adjusted earnings before interest and tax (EBIT) were €19 million, down from the prior year's €184 million, reflecting lower sales and shipments, and a significant reduction in capacity utilization due to planned shutdowns for conversion work in the Steel Europe segment.
Quarterly order intake amounted to €8.1 billion, down from €8.6 billion in the prior year.
Due to the effects of declining prices and demand, group sales decreased to €8.6 billion from the prior year's €9.1 billion.
Thyssenkrupp assumes that the market environment will remain challenging yet improved compared with the first half of the year.
However, it will still be characterized by uncertainties about future global economic growth. Against this backdrop, the group has expressly formulated its expectations with corresponding ranges for the key performance indicators.
The company confirmed its forecast for fiscal year 2024/2025. Thyssenkrupp continues to assume a return to profit with an improvement to a figure between €100 million and €500 million.
Adjusted EBIT is expected between €600 million and €1 billion. The company still expects sales to range between down 3% and flat.