Thyssenkrupp, the German industrial company, has announced a higher net profit in the third quarter of this year, even though its sales and adjusted earnings have decreased due to lower prices.
In the quarter, Thyssenkrupp made a net profit of 83 million euros, compared to 76 million euros in the same period last year. However, its sales fell by 12% to 9.6 billion euros.
The company’s closely watched adjusted earnings before interest and taxes also took a hit, falling by 66% to 243 million euros. This decrease was primarily driven by lower prices, reduced margins in its materials services business, and lower steel revenue.
Order intake for Thyssenkrupp dropped by 5.6% to 9.39 billion euros. The company attributes this decline, as well as the decrease in sales, mainly to the normalization of materials services prices.
Within the materials services division, sales experienced a significant decline of 30% to 3.35 billion euros. Meanwhile, adjusted EBIT fell by a staggering 87% to 50 million euros.
In the Steel Europe segment, sales decreased by 8.6% due to lower spot market prices. Adjusted EBIT also fell by 49% to 190 million euros.
Despite these challenges, Thyssenkrupp maintains its outlook for the fiscal year. The company expects an adjusted EBIT in the high three-digit-million-euro range, compared to its previous forecast of mid-to-high three-digit-million-euro range.