(Il Sole 24 Ore Radiocor) - Milano, 12 mag - German steel and industrial group thyssenkrupp said that in the second quarter ended March 31 its sales dipped to 8.4 billion euros from 8.6 billion euros a year ago reflecting declines at Steel Europe due to lower prices and Automotive Technology due to few customer call-offs.

Sales also fell at Decarbon Technologies, mainly due to declines in the water electrolysis business of thyssenkrupp nucera and in the new construction business of chemical plant engineering. By contrast, Materials Services increased sales, especially because of the distribution business in North America and the international trading business. Marine Systems also increased sales as a result of the project progress achieved.

Order intake rose by 2.6 billion euros to 10.6 billion euros.

At Marine Systems, the main drivers were the addition of two further 212CD class submarines in an extension of the order for Norway and additional orders received by the marine electronics business. Decarbon Technologies also posted significantly higher order intake, mainly in the water electrolysis business of thyssenkrupp nucera. Materials Services likewise performed positively, whereas Automotive Technology and Steel Europe posted slight declines in order intake.

Compared with the prior year, adjusted EBIT improved by 179 million euros to 198 million. Although its sales revenues remained lower, Steel Europe made the largest contribution to earnings, mainly due to reduced raw material and energy costs. Materials Services likewise posted significant earnings growth, buoyed by consistent cost-cutting measures, efficiency programs and higher prices. Automotive Technology also benefited from the restructuring and efficiency measures that have been implemented. At Decarbon Technologies, project-related additional costs in the water electrolysis business of thyssenkrupp nucera resulted in lower and slightly negative earnings. This was partly offset by a positive one-time effect in chemical plant engineering. At Marine Systems, adjusted EBIT was in line with the positive sales trend.

Overall, thyssenkrupp posted a net loss of 11 million from a profit of 167 million euros a year ago primarily due to the absence of the post-tax profit of around 270 million euros resulting from the sale of tk Electrical Steel India in the prior-year quarter. Net income after deducting minority interest was 1 million euros from 155 million euros the prior year.

Free cash flow before M&A was a negative 327 million euros from a negative 569 million euros a year ago thanks to higher earnings contributions and the absence of sales tax payments of 160 million euros in connection with the advance payment received by Marine Systems in the first quarter of 2024/2025.

The group confirmed its full year adjusted EBIT guidance of 500-900 million euros and still anticipates free cash flow before M&A will of between a negative 300-600 million, including restructuring costs, especially at Automotive Technology and Steel Europe. It still expects a ne loss of 400-800 million euros, including the establishment of restructuring provisions at Steel Europe.

It cut its sales forecast by one percentage point to flat to down 3% from up 1% to down 2% previously, primarily due to delayed revenue recognition at Decarbon Technologies and a.

changed product mix at Steel Europe.

(RADIOCOR) 12-05-26 08:11:12 (0128) 5 NNNN