Thyssenkrupp raises sales and earnings outlook and cuts free cash flow forecast

FRANKFURT, May 11 (Reuters)German conglomerate Thyssenkrupp TKAG.DE Wednesday raised its 2022 sales and operating profit outlook but lowered its free cash flow expectations, reflecting higher selling prices and raw material costs.

The car submarine parts group now expects its free cash flow before mergers and acquisitions to be in the negative triple-digit €million range, after previously guiding for a threshold of profitability.

“Dynamic commodity and material price movements are currently weighing on our cash flow. However, we expect there to be sequential improvements for us over the coming quarters,” Chief Financial Officer Klaus Keysberg said.

At the same time, the company has benefited from higher selling prices for steel and materials, she said, adding that she now expects sales to rise by a small percentage to double digits, compared to an average single-digit percentage increase seen previously.

Adjusted earnings before interest and tax (EBIT) are now expected to reach at least 2.0 billion euros ($2.1 billion), Thyssenkrupp said. It previously forecast adjusted EBIT of 1.5 billion to 1.8 billion euros.

In the second quarter, adjusted EBIT almost quadrupled to 802 million euros, while sales rose by nearly a quarter to 10.6 billion thanks to a 57% jump in order intake.

($1 = 0.9491 euros)

(Reporting by Christoph Steitz. Editing by Jane Merriman)

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