By Cristina Roca
Thyssenkrupp AG on Thursday cut its net profit guidance for fiscal 2022, blaming high interest rates, but backed its other targets for the year after its third-quarter results beat analyst views.
The German industrial company reported adjusted earnings before interest and taxes of 721 million euros ($742.6 million) for the three months to June 30, up from EUR266 million a year earlier, as sales rose 26% to EUR10.95 billion.
Analysts had expected adjusted Ebit of EUR705.4 million on sales of EUR10.51 billion.
Volumes at Thyssenkrupp’s core European steel business were lower, hit by supply shortages and weaker demand, but sales and order intake rose on the back of high prices.
However, net profit fell to EUR76 million from EUR125 million, hit by impairment losses. These were mainly due to a sharp rise in interest rates, Thyssenkrupp said.
As a result, Thyssenkrupp said it now expects its net profit for the year to be in the high three-digit million-euro range, compared with its previous guidance of at least EUR1 billion.
The company backed all its other targets for fiscal 2022, including adjusted Ebit of at least EUR2 billion.
Free cash outflow before mergers and acquisitions is still expected in the mid-three-digit million-euro range, Thyssenkrupp said. Before the Ukraine war broke out, the company had hoped to return to positive cash in fiscal 2022 after years of burning cash.
Write to Cristina Roca at [email protected]
