REG-ThyssenKrupp AG 3rd Quarter Results

Thu Aug 14, 2008 2:00am EDT

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LONDON--(Business Wire)--

ThyssenKrupp in the first nine months of 2007/2008

Performance exceeds expectations

Further improvement in quarterly earnings - earnings before taxes after 9 months
reach EUR 2,297 million

Forecast raised to over EUR 3.2 billion

In the first nine months of fiscal year 2007/2008, ThyssenKrupp once again
demonstrated the earnings power of its business portfolio. Despite the slowing
of the world economy, the Group generated higher sales than in the prior-year
period. The Group's earnings before taxes have improved from quarter to quarter
in the current fiscal year (1st quarter: EUR 646 million, 2nd quarter: EUR
742 million, 3rd quarter: EUR 909 million) and amounted to EUR 2,297 million;
this was higher than planned. Excluding major nonrecurring items, comprising the
pre-operating costs for the new steel mills, restructuring expense in the Steel
and Elevator segments and disposal gains in the Technologies segment, earnings
are EUR 1,073 million for the third quarter and EUR 2,572 million for nine
months. As expected, earnings failed to match the prior-year level, which was
characterized by an exceptional situation on the stainless steel markets.

The highlights for the first nine months of 2007/2008 were as follows:

    --  Order intake was EUR 41.5 billion (nine months 2006/2007: EUR
        42.8 billion), 3% lower than a year earlier.

    --  Sales rose by 2% to EUR 39.7 billion (EUR 38.9 billion).

    --  EBITDA was EUR 3,646 million, compared with EUR 4,266 million in the
        prior year.

    --  Earnings before taxes decreased to EUR 2,297 million from EUR
        2,853 million in the previous year. Before major nonrecurring items, EBT
        would have been EUR 2,572 million (prior year EUR 3,294 million).

    --  Earnings per share fell from EUR 3.25 to EUR 3.06.

    --  Net financial debt at June 30, 2008 was EUR 2,127 million. On June 30,
        2007, net financial debt stood at EUR 806 million.

The highlights for the 3rd quarter of 2007/08 were as follows:

    --  Order intake was EUR 14.2 billion (3rd quarter 2006/2007: EUR
        15.6 billion).

    --  Sales rose to EUR 14.2 billion (EUR 13.4 billion).

    --  EBITDA was EUR 1,366 million (EUR 1,728 million).

    --  Earnings before taxes were EUR 909 million compared with EUR
        1,219 million in the prior year. Before major nonrecurring items, EBT
        would have been EUR 1,073 million (prior year EUR 1,180 million).

    --  Earnings per share were EUR 1.21, compared with EUR 1.49 in the prior

Executive Board Chairman Dr. Ekkehard Schulz: "Our performance to date
impressively demonstrates the advantages of our balanced portfolio of activities
in Steel, Capital Goods and Services and our strategy of occupying at least top
3 positions in attractive markets. For the current fiscal year we are raising
our earnings forecast to over EUR 3.2 billion before taxes and nonrecurring
items. As things stand at present we also expect sales to increase to EUR
53 billion. This will fulfill our expectations of a good fiscal year."

Earnings expectations for the Group take into account the fact that the Steel
segment will not be able to pass on the sharp rises in raw material prices - in
particular for iron ore and coking coal - in full to customers in the current
fiscal year due to contract structures. Demand for steel products remains very
pleasing, as reflected in continued price increases, fully confirming the
expectations of another good steel year.

In the Stainless segment, base prices are improving more slowly than expected.
Demand is stable, while service centers are being cautious in view of the nickel
price trend. Due to the weakness of the US dollar there are signs of further
imports from the US dollar zone, which could slow prices in the second half of
the year. Nevertheless, the segment is expected to deliver a positive earnings

Technologies continues to profit in particular from infrastructure development
and urbanization in the world's growth regions. A high order backlog, stretching
several years into the future with increasing earnings quality, provides a high
degree of planning certainty.

Thanks to its high service share, the Elevator segment continues to deliver a
very stable earnings contribution.

Services is profiting from rising demand for materials in the growth regions.
With material prices continuing to rise sharply, very encouraging growth in
earnings is expected to continue in the further course of the year.

CEO Schulz on the longer-term outlook: "We expect sales to continue to grow in
2008/2009 provided no unforeseen economic downturns impact our business. Growing
sales will also be reflected in earnings. The mid-term sales target for
ThyssenKrupp is EUR 60 billion, while our mid-term goal for sustainable earnings
before taxes and nonrecurring items is EUR 4 billion. In the longer term,
especially after the startup of the Steel segment's new slab mill in Brazil, the
Steel and Stainless segments' new steelmaking and processing plant in the USA
and the investments of the other segments in other regions, we expect to achieve
sales of around EUR 65 billion and earnings before taxes and nonrecurring items
of EUR 4.5 to 5.0 billion."

Online and downloadable versions of the full interim report are available in
German and English at

A copy of the interim report has been submitted to the UK Listing Authority, and
will shortly be available for inspection at the UK Listing Authority┬┤s Document
Viewing Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf


Tel. No. (0)20 7676 1000

ThyssenKrupp AG

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