DUISBURG (dpa-AFX) - Shares of thyssenKrupp AG (TYEKF.PK) were gaining around 2 percent in the morning trading in Germany after the steel giant Thursday said it expects clearly positive net income and significantly higher adjusted EBIT, a key earnings metric, in fiscal 2018. This was after reporting higher adjusted EBIT, sales and order intake in its fiscal 2017, despite a net loss due to charges.
thyssenkrupp CEO Heinrich Hiesinger said, 'We achieved our best order intake since the start of the Strategic Way Forward. We exceeded our growth and earnings targets.'
For the year 2017, net loss attributable to shareholders was 649 million euros due to one-time earnings charges as a result of the sale of the Brazilian steel mill CSA in the second quarter, while prior year's net profit was 296 million euros. Loss per share was 1.15 euros, compared to profit of 0.52 euro a year ago.
On a continuing operations basis, excluding Steel Americas, attributable net income decreased 32% to 212 million euros from 311 million euros last year. Earnings per share from continuing operations were 0.37 euro compared to 0.55 euro a year ago.
Excluding one-time effect, attributable net income was higher year-on-year and in line with the original forecast.
Earnings before interest and tax or EBIT was 687 million euros, down 42 percent. Adjusted EBIT rose 30 percent from last year to 1.91 billion euros and adjusted EBIT from continuing operations increased 15 percent to 1.72 billion euros.
Fiscal-year net sales grew 9 percent to 42.97 billion euros from 39.26 billion euros a year ago. Sales from continuing operations increased 9 percent to 41.45 billion euros.
The company's order intake increased 18 percent from last year to 44.29 billion euros. Components Technology and Elevator Technology once again reported record figures.
Further, the Executive Board and Supervisory Board proposed to the Annual General Meeting an unchanged dividend of 0.15 euros per share.
Looking ahead, thyssenkrupp said it is optimistic overall with regard to the current fiscal year 2018. The company forecasts clearly positive net income above the prior-year figure, and aims to achieve a significant increase in adjusted EBIT to a range of 1.8 to 2.0 billion euros, compared to prior year's adjusted EBIT from continuing operations of 1.72 billion euros.
Alongside strict implementation of the transformation processes, the efficiency program 'impact' is again expected to contribute to the attainment of the Group's targets with EBIT effects of 750 million euros.
In Germany, thyssenkrupp shares were trading at 22.35 euros, up 1.98 percent.
Copyright RTT News/dpa-AFX