Germany-based steelmaker ThyssenKrupp has announced its financial results for the financial year 2012-13, stating that it is planning a capital increase of up to 10 percent, raising €1 billion, as the sale of its US steel mill has now been concluded.
For the full financial year, ThyssenKrupp saw a significant decline in its net loss to €1.5 billion, compared to a net loss of €5 billion in the previous financial year, impacted by the operating losses and impairment charges at Steel Americas, expenses in connection with the shareholding in Outokumpu, the fine and provisions for compliance violations in the rail cartel case, and restructuring measures in connection with the reorganization of the company.
During FY 2012-13, ThyssenKrupp's European steel business recorded an order intake of €9.5 billion, decreasing nine percent year on year since the market weakness in Europe with the existing supply surplus put extreme pressure on steel prices. Regarding the Americas steel business, order intake remained unchanged at €2.1 billion, though order volumes were higher. Despite the increasing production and shipments, sales were down by seven percent at €1.9 billion as a result of low selling prices.
For the financial year 2013-14, ThyssenKrupp expects sales to grow year-on-year by a mid-level single-digit percentage rate. The company expects a significant improvement towards break-even earnings for FY 2013-14.