REG-ThyssenKrupp AG Final Results

Fri Nov 28, 2008 2:09am EST

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LONDON--(Business Wire)--

ThyssenKrupp in fiscal year 2007/2008

Earnings before taxes and major nonrecurring items ahead of forecast at €3.5

Order intake and sales higher year-on-year

Further increases in net income (€2.28 billion) and earnings per share (€4.59)

Due to increasing uncertainty on financial and real markets, no quantifiable
forecast for fiscal year 2008/2009

ThyssenKrupp again achieved excellent results in fiscal 2007/2008. Executive
Board Chairman Dr. Ekkehard Schulz: “They validate our strategy of further
focusing the Group in its conglomerate structure and going for long-term
sustainable and profitable growth.” 

The key data of fiscal 2007/2008:

* Earnings before taxes were €3,128 million (fiscal year 2006/2007: €3,330
million). Earnings before taxes and major nonrecurring items came to €3.5
billion, exceeding our raised forecast of August 2008 of over €3.2 billion. 
* Demand for the Group’s products and services increased further. Order intake
reached €55.2 billion, compared with €54.6 billion in fiscal 2006/2007. 
* Sales at €53.4 billion (€51.7 billion) were higher than forecast and higher
* Earnings per share reached €4.59, up 7 percent from fiscal 2006/2007 (€4.30). 
* The solid earnings situation allows us to continue our policy of dividend
continuity. In January 2009, the Executive Board and Supervisory Board will
propose to the Annual General Meeting the payment of an unchanged dividend of
€1.30 per share. Compared with the first dividend in 1998/1999 of DM1.40 - or
€0.72 - the payout has now almost doubled. In addition, in the past two years
the Group has repurchased around 10 percent of its shares. 
* Net financial debt amounted to €1.58 billion. Schulz: “With cash and cash
equivalents of €2.8 billion and unused committed credit facilities of €4.6
billion, we are starting the new fiscal year on a very solid financial footing.”

* ROCE stood at 18.3% in the past fiscal year, compared with 20.7% in fiscal
* The Group’s equity ratio was 27.6 percent at the end of the fiscal year,
almost unchanged from a year earlier (2006/2007: 27.4 percent). 
* ThyssenKrupp employed 199,374 people worldwide on September 30, 2008, 4% more
than at the end of the previous fiscal year (191,350). 85,097 of these were
employed in Germany, roughly the same as in the prior year. 
* The share purchases by the management illustrate our confidence in
ThyssenKrupp’s value potential.

In the uncertain environment of the financial crisis, ThyssenKrupp has reviewed
its plans and targets for the current fiscal year 2008/2009. The downturn in the
auto, machinery and construction industries will also leave its mark on
ThyssenKrupp. Schulz: “We therefore face a significant drop in sales in
2008/2009, the extent of which cannot yet be predicted. This will have a
corresponding effect on earnings. The increasing uncertainty on the financial
and real markets makes it impossible to provide a quantifiable forecast at this
time. We will supply more concrete information on the current fiscal year in our
quarterly reporting”. If - as currently predicted - the global economy emerges
from the downturn and gathers momentum again in 2010, ThyssenKrupp will also
return to its long-term growth track. 

To safeguard earnings and liquidity ThyssenKrupp has taken clear steps to reduce
costs in the Group, lower net working capital and flexibilize the investment
program. These measures will be supported by the continuation of our portfolio

Schulz: “We are firmly convinced that the growth strategy we launched in 2005 is
right. The financial crisis may cause delays, but the long-term success of the
Company will remain unaffected”. 

In the medium to longer term, in particular after the start-up of the Steel and
Stainless segments’ major investments in North and South America and those of
the other segments in other regions, we expect to achieve earnings before taxes
and major nonrecurring items of €4 to 5 billion and sales of €60 to 65 billion. 

The annual report 2007/2008 is available in German and English; both versions
can be downloaded from the internet at An interactive
online version of the report for the media is also available on our website. 

A copy of the annual 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  
 Document Disclosure           
 UK Listing Authority          
 25 The North Colonnade        
 Carnary Wharf                 
 LONDON E14 5HS                
 Tel. No. (0)20 7676 1000      

ThyssenKrupp AG 

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