REG-ThyssenKrupp AG Thyssenkrupp in the 1st Half 2008/2009 and Outlook for the Full Fiscal Year

Tue May 12, 2009 9:52am EDT

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DÜSSELDORF--(Business Wire)--

Business significantly impacted by economic collapse Order intake and sales
lower Group earnings before taxes EUR(215) million Negative full-year earnings

The economic fundamentals have deteriorated significantly in recent months. The
collapse in demand and sharply falling prices on the markets for carbon and
stainless steel and international materials services as well as declines on the
international auto markets and in civil shipbuilding impacted ThyssenKrupp
heavily. In the 1st half 2008/2009 ThyssenKrupp's sales were down by 16% and
orders by 25% year-on-year. The decline was particularly severe in the 2nd
fiscal quarter. 

The Group's 1st half earnings before taxes also fell sharply to a loss of EUR215
million. Earnings were impacted by major nonrecurring items totaling EUR265
million, in particular pre-operating costs for the new plants in Brazil and the
USA of EUR109 million. The Company also incurred impairment charges on property,
plant and equipment and restructuring expenses. 

Steel's earnings were still positive in both the 2nd quarter and the 1st half,
while Stainless returned a loss in both quarters. The 1st half results of
Stainless and Services were additionally impacted by writedowns on inventories.
Due to substantial charges at the shipyards and declining business in the
automotive and construction machinery sectors, Technologies also recorded a loss
in the 2nd quarter, though income for the first six months was still positive.
Elevator delivered a good earnings contribution; profits increased in all
business units. Services reported a loss for the first half year. 

Highlights for the 1st half 2008/2009: 

- Order intake decreased by 25% to EUR20.5 billion (prior year: EUR27.4
billion). - Sales fell by 16% to EUR21.4 billion (EUR25.5 billion). - EBITDA
came to EUR906 million, compared with EUR2,280 million a year earlier. -
Earnings before taxes amounted to EUR(215) million, down from EUR1,388 million.
- Earnings before taxes and major nonrecurring items amounted to EUR50 million
(prior year: EUR1,499 million). - Earnings per share dropped from EUR1.85 to
EUR(0.35). - Net financial debt at March 31, 2009 was EUR3,687 million. On
September 30, 2008 we reported net financial debt of EUR1,584 million. On March
31, 2008 net financial debt stood at EUR1,988 million. 

Highlights for the 2nd quarter 2008/2009: 

- Order intake decreased by 46% to EUR7.6 billion (prior year: EUR14.1 billion).
- Sales fell by 25% to EUR9.9 billion (EUR13.2 billion). - EBITDA came to EUR142
million, compared with EUR1,197 million in the corresponding prior-year period.
- Earnings before taxes amounted to EUR(455) million, down from EUR742 million.
- Earnings before taxes and major nonrecurring items amounted to EUR(283)
million (prior year: EUR784 million). - Earnings per share dropped from EUR1.00
to EUR(0.71). 

ThyssenKrupp expects a significant drop in order intake and sales for full
fiscal year 2008/2009. This will be reflected in earnings. Positive effects from
falling input material prices, mainly in the 2nd half, will only partly offset
price and volume declines. 

ThyssenKrupp expects to end the current fiscal year with a loss before taxes and
major nonrecurring items - restructuring expense, project costs and impairment
charges. Depending on future economic developments, a loss before taxes and
major nonrecurring items in the mid to high three-digit-million euro range is
expected. To counter the crisis, ThyssenKrupp is implementing an extensive
package of cost-cutting measures in the current fiscal year. In addition, the
Group is to undergo strategic reorganization. These measures will make a key
contribution to significantly strengthening the Group's future earnings power.
Targeted steps are also being taken to significantly reduce net working capital.
Measures are being implemented to reduce or postpone the investment program. 

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

Questions should be addressed to Dr. Jürgen Claassen (Communications, Strategy &
Technology, Tel. +49 211/824-36001) or Dr. Claus Ehrenbeck (Investor Relations,
Tel. +49 211/824-36464). 


Language: English 

Issuer: ThyssenKrupp AG August-Thyssen-Str. 1 40211 Düsseldorf Deutschland 

Phone: +49-(0)211-824-1 

Fax: +49-(0)211-824-36000 



ISIN: DE0007500001 

WKN: 750000 

Indices: DAX 

Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf; Freiverkehr
in Berlin, Hannover, Stuttgart, München, Hamburg; Terminbörse EUREX Weitere
Informationen im Internet unter Investor Relations: Anleihen / Creditor
Relations, Further information can be found on our website under Investor
Relations: Bonds / Creditor Relations 


Name:Claus Ehrenbeck

ThyssenKrupp AG

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