German steelmaker ThyssenKruppAG said May 10 that its net income attributable to shareholders plunged62% year over year to €37 million, or 7 cents per share, for the company's fiscalfirst half ended March 31.
"Our half-year results still reflect the very weak situationon the materials markets. While we are now seeing a recovery in material prices,it is coming later than we originally expected and from a lower level and will alsobe reflected in our figures with a time lag," CEO Heinrich Hiesinger said.
EBITDA decreased by 15% to €1.07 billion, with net sales falling8% on a yearly basis to €19.40 billion while the group's order intake decreasedin the six-month period by 8% to €18.84 billion.
The company attributed the decline in orders and sales partlyto lower volumes but mainly to the sharp fall in prices at the materials businesses.
Net sales included €675 million from the group's Steel Americasdivision, down 34% year on year on a comparable basis due to increased price pressuresin the U.S. and South America. Shipments were up 18% to 2.2 million tonnes.
At Steel Europe, sales fell by 14% on a comparable basis to €3.65billion as shipments declined by 9% to 5.2 million tonnes.
The group's operating cash flow was negative at €703 million,compared to negative €174 million in the same period a year earlier.
For the second quarter of its fiscal year, the group's net incomeattributable to shareholders jumped 26% on a yearly basis to €61 million as netsales dropped 10% to €9.85 billion. EBITDA also fell by 13% to €585 million.
For the ongoing full year, the group expects adjusted EBIT ofup to €1.4 billion supported by €850 million from the company's efficiency programs.The expectation compares to prior adjusted EBIT forecast of between €1.6 billion and €1.9 billion.
However, Sven Diermeier, an analyst at Independent Research GmbH,told Bloomberg News: "I was a bit surprised by the profit warning because steelprices have recovered significantly since mid-February."