STEELMAKER ThyssenKrupp said it sees profit rising next year, driven by economic growth in Germany and emerging markets, but analysts said its outlook sounded conservative.
ThyssenKrupp has benefited from a strong rebound in Germany’s export-driven economy, whose automotive and engineering sectors posted robust profit margins while construction remained weak.
The Eurozone’s biggest economy is powering ahead of other states, with exporters’ strength in emerging markets helping Germany grow while domestic demand is steadily taking hold.
“Thyssen is exposed to booming German markets as well as the relatively favourable environment in Austria, the Netherlands and Scandinavia,” said Herman Reith, an analyst at BHF Bank.“There is also the euro-dollar rate, which makes exports from these countries competitive.”
ThyssenKrupp chief executive Ekkehard Schulz said that emerging markets such as India, China and Brazil are growth drivers, along with central and eastern Europe.
ThyssenKrupp said adjusted earnings before interest and taxes would be around €2bn (£1.68bn) compared with €1.2bn in fiscal 2010.