ThyssenKrupp Nabs a Profit - Steel Division Still Faces Hurdles
Thyssenkrupp Reports Profit Recovery, Yet Steel Division Continues to Struggle - Steel conglomerate Thyssenkrupp establishes profitability once more amidst the ongoing turmoil in the steel industry.
Here's some good news, folks! After a string of six consecutive quarters in the red, ThyssenKrupp has finally made it back into the black. And guess what sold like a hotcake? ThyssenKrupp Electrical Steel India, adding around 270 million euros to the post-tax profits, they announced.
The German conglomerate has kept its promise and is on track with its forecast, expecting an operating profit of 600 million to one billion euros. However, let's not sugarcoat it. During the second quarter, the profit was a meager 19 million euros, far cry from the 184 million euros of the previous year. The company is quick to blame weaker earnings and lower production capacity utilization for this slump. Their revenue also took a dip, falling to 8.6 billion euros from last year's 9.1 billion euros.
That profitable sales deal aside, the steel business isn't out of the woods yet. It's back in the red with a loss of 23 million euros compared to an operating profit of 68 million euros the previous year.
ThyssenKrupp's steel division has been undergoing a significant overhaul for some time now. Remember last year when they announced plans to chop 11,000 jobs? Well, there's been some movement in that front. The EP Group, helmed by Czech businessman Daniel Kretinsky, has already bagged a 20% stake in ThyssenKrupp Steel, with another 30% in the pipeline.
And what does CEO Miguel López have to say about all this? He's keeping the faith, predicting "a more stable market environment and positive effects from the measures we have taken" for the second half of the year. He labels the current business year as one of "decisions" and "transition."
ThyssenKrupp
- Steel Division
- Industrial Conglomerate
- India
- Fiscal Year
- Restructuring Plan
- Job Cuts
In an encouraging turn of events, ThyssenKrupp is exploring avenues for continued improvement within its steel division. As part of their restructuring plan, potential vocational training programs could be introduced to equip the workforce with industry-specific skills, beneficial for business growth and financial stability. With industry stakeholders like the EP Group investing in ThyssenKrupp Steel, there's optimism for a more prosperous fiscal year ahead.
