Pre-tax profit lifts Thyssen to another level

THYSSENKRUPP yesterday announced an improvement of pre-tax profit of 33 per cent for the first three quar­ters, at €1.26m (£900,000), as it reaffirmed its forecast for its full-year results.

The third quarter saw the highest gain in earnings with a 33 per cent increase year-on-year of €539,000.

Chief executive Dr Heinrich Hiesinger said: “The further earnings improvement reflects the progress we have made in implementing measures to increase efficiency. We are establishing a culture of increased performance enhancement in the group.”

Strong results from the technical manufacturing and services division, Elevator Technology, and Steels Europe helped it to navigate difficult market conditions. Double-digit growth in both sales and order book at Elevator marked a four per cent increase year-on-year.

Slowness in the Chinese market affected growth, with elevator sales flat, while South Korean and US operations picked up the slack. Full-year expectations for profit before taxes and interest remain at €1.6bn.

Despite the positive results, the firm’s share price fell slightly through the day. Seth Rosenfeld, analyst at Jeffries, said in a note: "The stock should gradually re-rate as investor concerns are assuaged.”