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Thyssenkrupp aims to boost margins at elevators unit ahead of planned sale, IPO

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Thyssenkrupp aims to boost margins at elevators unit ahead of planned sale, IPO

German conglomerate thyssenkrupp AG plans to boost the margins of its elevators unit ahead of a planned sale or IPO of the business.

The company said Dec. 11 that it is aiming to increase the segment's adjusted EBIT margin by 11.5% to 13.0% in fiscal 2020/2021 by standardizing products, optimizing production, expanding the service business and streamlining administration.

Thyssenkrupp expects annual savings of about €80 million globally over the next three years by establishing shared service centers, optimizing IT and improving organizational efficiency.

The elevator unit's carve-out is expected to be complete by the end of 2019. The company will decide in the first quarter of 2020 whether to float the business or sell it in part or in full.

In an attempt to win a bid for the business, KONE Oyj, thyssenkrupp's Finnish rival in the elevators business, reportedly offered a €3 billion breakup fee as part of a proposed €17 billion deal, although it may face antitrust scrutiny.