Thyssenkrupp’s third-quarter operating profit nearly tripled on rebound in steel prices

FRANKFURT, Aug 11 (Reuters) – Thyssenkrupp’s third-quarter operating profit nearly tripled on higher steel prices, the German conglomerate said on Thursday, but added it was facing headwinds from high commodity prices and rising interest rates.

The company’s adjusted earnings before interest and tax (EBIT) reached 721 million euros ($743 million) in the April-June period, compared with 266 million in the same period last year.

More than half of this sum, or 376 million euros, came from the steel business of the company, the second in Europe, which benefited from higher selling prices which compensated for the increase in the costs of the energy and raw materials, said Thyssenkrupp (TKAG.DE).

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A worker checks a tapping of a blast furnace at Europe’s largest steel plant of German industrial conglomerate ThyssenKrupp AG in Duisburg, Germany, December 6, 2012. REUTERS/Ina Fassbender/

“In the third quarter, we were again affected by the increase in the price of raw materials and other materials,” said chief financial officer Klaus Keysberg. “However, we expect a significant easing in net working capital and a clearly positive cash flow in the fourth quarter.”

Rising interest rates led to impairments of around 480 million euros, Thyssenkrupp said, forcing it to lower its 2022 net profit outlook, which is now expected to be in the high three-point range. figures of one million euros, against at least 1 billion previously.

The group, which makes everything from submarines and auto parts to fertilizer plants and electrolyzers, confirmed its outlook for adjusted EBIT, revenue and free cash flow before mergers and purchases.

($1 = 0.9705 euros)

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Reporting by Christoph Steitz, editing by Rosalba O’Brien and Matthias Williams

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