* Net loss for the year of 4.7 bln euros
* Thyssen writes down Steel Americas value to 3.9 bln euros
* Thyssen omits 2011/12 dividend
* Says to further cut costs to boost EBIT by 2 bln euros
FRANKFURT, Dec 10 ThyssenKrupp AG,
Germany's top steelmaker, posted a massive 4.7 billion euro
($6.1 billion) net loss for the year as it took a painful
write-down on steel mills in the United States and Brazil that
it is trying to sell.
The company said late on Monday it has cut the book value of
the mills, which is bundled in its Steel Americas business, to
3.9 billion euros from 7 billion because bids from potential
buyers were too low.
Steel Americas is one of several businesses Chief Executive
Heinrich Hiesinger is seeking to sell in a major overhaul to
raise money for investments in ThyssenKrupp's engineering and
Once Steel Americas is sold, only about 30 percent of group
revenue will come from steel, ThyssenKrupp said, raising the
importance of its businesses making car parts, factories and
The Steel Americas plants, in which Thyssen invested about
12 billion euros over the years, had been meant to give
ThyssenKrupp a foothold in the Americas, but costs for the mills
ran far over budget while demand for the steel they made grew
In the 2011/12 financial year ended Sept. 30, Steel Americas
posted an operating loss of about 1 billion euros, excluding the
Analysts in a Reuters poll had forecast a net loss of 985
The ill-fated foray into the Americas cost former Chief
Executive Ekkehard Schulz his job last year, and Hiesinger last
week axed half of his management board, including the group
steel chief Edwin Eichler.
"The Steel Americas project and the various compliance
violations have not just caused immense financial damage. We
have thereby also lost trust and credibility," Hiesinger said in
a statement on Monday.
"With the changes on the Executive Board, the Supervisory
Board has sent out a clear signal for a fresh start."
Thyssen said the sale of the business was on track and would
be completed in its current financial year.
Global steelmakers like U.S. Steel and rival Nucor
have been named by sources as being in the running to
buy some Steel Americas assets, as have Japanese groups JFE
Steel Corp and Nippon Steel, and Brazil's CSN
Thyssen has said a key reason that the Steel Americas
project has failed was that management had based its investment
decisions on assumptions and key data that were either too
optimistic or later proved to be incorrect.
Due to the full-year group loss, Thyssen said it would pay
no dividend for the 2011/12 fiscal year.
For the 2012/13 financial year it forecast a decline in
adjusted operating profit - excluding Steel Americas and
recently sold stainless steel maker Inoxum - to about 1 billion
euros from 1.4 billion from a year earlier, while providing no
It said it saw group revenue from continuing operations
remaining flat this fiscal year at about 40 billion euros.
Thyssen has also said it is considering demanding
compensation for the Steel Americas disaster from Schulz and
other managers if it can show that they knowingly provided false
information regarding the investments there.