Investors Seem Surprisingly Willing To Buy ThyssenKrupp's Weird Brew
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Jul. 11, 9:57 AM
- ThyssenKrupp (OTCPK:TYEKF) confirms that it is in talks with India's Tata Steel about a consolidation of European steel mills that have been hurt by overcapacity, weak demand and cheap imports.
- Tata had said earlier that it suspended the process of selling its U.K. business while it held talks with potential partners, including ThyssenKrupp, about alternative and more sustainable solutions for its entire European business.
- ThyssenKrupp says the U.K. vote to leave the European Union and the outcome of the U.K. government's consultation on Tata Steel's British Steel pension scheme have prompted a rethink on its next moves.
Tue, May 10, 9:02 AM
Tue, May 10, 8:59 AM
- ThyssenKrupp (OTCPK:TYEKF) fell as much as 6% in German trading after reporting weak FQ2 net sales and orders and lowering its FY 2016 earnings forecast.
- The steel maker says FQ2 net profit totaled €61M, vs. €48M in the same period a year ago, largely the result of fewer special items such as restructuring costs, but sales fell 10% Y/Y to €9.85B, hurt by lower volumes and the drop in materials prices.
- Adjusted EBIT fell 20%, to €326M, held back by the materials businesses; stronger earnings at the capital goods business, including the elevator division, could not offset the weak performance at the steel and materials services businesses.
- ThyssenKrupp now sees FY 2016 EBITDA of "at least" €1.4B compared with a prior estimate of €1.6B-€1.9B, although it expects to achieve significant improvements at its materials businesses in H2 due to the recovery in materials prices and cost-reduction measures.
Fri, Apr. 15, 10:47 AM
- ThyssenKrupp (OTCPK:TYEKF) seeks an active role in any consolidation of the European steel market, which is afflicted by excess production capacity and a weak demand outlook, CEO Heinrich Hiesinger says.
- The German steelmaker may have a unique chance to merge its European steel operations with those of Tata Steel, but is caught between the interests of shareholders - many of whom would like to see the company shed the steelmaking activities that are a drag on its valuation - steelworkers and politicians - who likely would resist any move that could cost jobs and see the company abandon its 200-year-old steelmaking roots.
- Credit Suisse believes ThyssenKupp management "must be under some time pressure - if the steel cycle recovers sharply, the rationale for a demerger of steel would be weaker, and a window could have been missed."
- Now read Report: ThyssenKrupp considering ArcelorMittal, others for possible merger
Thu, Apr. 14, 6:26 PM
- ArcelorMittal (NYSE:MT) gained more than 4% in today's trade after German newspaper Handelsblatt reported that ThyssenKrupp (OTCPK:TYEKF) had initiated talks about a possible merger.
- The German steelmaker also is said to be meeting with Tata Steel and Salzgitter.
- Any deal between ThyssenKrupp and one of the three companies likely would be reached before the end of the year, and could be structured in a way that it starts out as a partnership and evolves into a merger later on, according to the report.
- Now read ArcelorMittal: The bull run will continue
Mon, Apr. 4, 6:33 PM
- Vale (NYSE:VALE) says it will sell its entire 26.87% stake in the CSA steel plant to ThyssenKrupp (OTCPK:TYEKF) for a "symbolic price," confirming a report on Friday which said the Brazilian iron ore miner was planning to exit the venture.
- Vale says it will retain its rights to sell iron ore to the Companhia Siderúrgica do Atlantico plant under an existing shareholder agreement, while other contracts and agreements between the companies will be ended as ThyssenKrupp, which already owns 73% of the plant, takes full ownership.
- Now read Vale S.A.: The rally could be short term
Fri, Apr. 1, 12:47 PM
- Vale (VALE +3.1%) is finalizing a proposal to exit a money-losing Brazilian steelmaking venture with ThyssenKrupp (OTCPK:TYEKF), Reuters reports.
- Under the draft plan, which has yet to be approved by Vale's board, the company would sell its ~27% stake in CSA Siderúrgica do Atlántico to partner ThyssenKrupp for $1, and Vale also would also agree to assume 10% of CSA's contingent liabilities, according to the report.
- Vale's planned exit from Brazil's most costly foreign investment project ever is the latest sign the steel mill has become a liability for both Vale and Thyssen, which tried unsuccessfully to sell the venture in recent years, Reuters says.
- Now read Report: Tata Steel eyes stake in ThyssenKrupp's Europe steel unit
Fri, Apr. 1, 9:08 AM
- ThyssenKrupp (OTCPK:TYEKF) rises as much as 8% in Europe following a report that India's Tata Steel may be interested in taking a stake in the German company's European steel business.
- German newspaper Rheinische Post reports that talks between the two companies were in an "advanced stage," and would most likely pursue a joint venture, with an option for Tata Steel to increase its stake at a later time.
- Analysts and investors have long suspected that ThyssenKrupp could shed its European steel division, as the company seeks to refocus around its capital goods businesses.
- Now read ThyssenKrupp surges as Tata Steel prepares to sell U.K. business
Wed, Mar. 30, 1:11 PM
- German steel producer ThyssenKrupp (OTCPK:TYEKF) jumped more than 8% today in Europe after India's Tata Steel said the slump in global prices has forced it to consider selling its loss-making U.K. operations.
- Tata’s exit from the U.K. might result in consolidation in the European steel industry, and a combination of Tata and ThyssenKrupp “may now become more than just a hypothesis,” says Berenberg analysts as they reiterate a Buy rating on ThyssenKrupp.
- Tata says it has suffered more than £2B ($2.88B) in asset impairments during the last five years stemming from its U.K. operations.
- Tata’s U.K. assets, once controlled by British Steel and bought for $12B a decade ago, include the giant Port Talbot works in South Wales, and a sale would risk the loss of thousands of industrial jobs in an economically deprived region.
Fri, Feb. 12, 9:10 AM
Fri, Feb. 12, 8:45 AM
- ThyssenKrupp (OTCPK:TYEKF) reports a net loss of €23M ($26.1M) for its FQ1 ended Dec. 31, swinging from a €54M net profit in the year-ago quarter and significantly missing analyst consensus for a €40M net profit.
- FQ1 sales fell 5% Y/Y to €9.55B and EBITDA fell by 26% to €234M, reflecting price and margin pressure in the steel and materials businesses.
- The steelmaker reiterates its FY 2016 guidance for adjusted EBIT of €1.6B-€1.9B, but cautions that the outlook is predicated on a "significant recovery" of the materials markets in H2 of the fiscal year.
Nov. 30, 2015, 4:39 AM
- Bids for one of the world's most lucrative defense contracts, to build Australia's new submarine fleet worth up to A$50B ($36B), were submitted on Monday.
- Ten months ago Australia, under pressure from Germany and France, withdrew plans to award the contract to Japan without a competitive tender.
- Key bidders are Germany's ThyssenKrupp (OTCPK:TKAMY, OTCPK:TYEKF), France's DCNS (privately-held), and Japan's Mitsubishi Heavy Industries (OTCPK:MHVYF) and Kawasaki Heavy Industries (OTCPK:KWHIF, OTCPK:KWHIY).
- Bidders must submit three separate proposals: building the submarine fleet in their own country; building the fleet in Australia; and a hybrid option whereby work is conducted in both countries.
- Australia plans to to announce its partner next year.
- Source: FT - see there for an excellent comparison of the the merits and disadvantages of each bid.
Nov. 19, 2015, 8:28 AM
- ThyssenKrupp (OTCPK:TYEKF) reports a 46% rise in net profit for FY 2015 and says its free cash flow before divestments came in positive for the first time since FY 2006.
- However, its proposed dividend of €0.15/share, up from €0.11 paid for 2013-14, was at the bottom end of analysts' forecasts.
- Net profit for FY 2015 was €309M ($329.5M), compared with €212M for the prior fiscal year and falling short of analyst expectations for €405M, and free cash flow before divestments was €65M, vs. a cash drain of €357M in FY 2014.
- ThyssenKrupp says FY 2015 adjusted EBIT from continuing operations rose 26% Y/Y to €1.68B, at the top end of its previously raised guidance, and expects next year's adjusted EBIT between €1.6B-€1.9B.
- ThyssenKrupp says it expects a "clear improvement" in net profit for FY 2016 and free cash flow at the same level as FY 2015, but issues a "cautious" outlook for next year, citing "growing economic uncertainties and high import pressure on materials markets."
Aug. 13, 2015, 10:58 AM
- ThyssenKrupp (OTCPK:TYEKF) says its FQ3 net profit soared nearly 5x from the same period last year, to €199m from €42M, driven largely by its ongoing cost-cutting and restructuring measures.
- FQ3 sales rose 4% Y/Y to €11.2B, helped by strong growth at the components technology and elevator technology businesses; orders increased 5%, to €10.65B, and adjusted EBITDA surged 33% to €539M.
- Sales in FY 2015's first nine months rose 7% Y/Y to €32.2B vs. the prior year's €30.1B, with order intake coming to €31.1B, up slightly from €31B a year ago.
- FQ3 free cash flow was positive at €257M, compared with a deficit of free cash for the year-ago quarter, but net financial debt rose 3% to €4.4B.
- The German steelmaker confirms its FY 2015 outlook, continuing to guide for an adjusted EBIT of €1.6B-€1.7B, with all business areas except the Steel Americas unit expected to generate significant positive contributions.
May 14, 2015, 8:38 AM
- ArcelorMittal (NYSE:MT) +6.4% premarket after the European Union announces tariffs as high as 35.9% on electrical steel from the U.S., Russia, Japan, China and South Korea.
- The duties punish exporters of grain-oriented electrical steel - used in power transformers - from the five countries for allegedly having sold it in the EU below cost; they take effect today and last for six months, but could be prolonged for five years.
- EU producers that also include ThyssenKrupp (OTCPK:TYEKF) and Tata Steel suffered “material injury” as a result of the dumped imports, the European Commission says.
May 12, 2015, 12:40 PM
- ThyssenKrupp (OTCPK:TYEKF) raises its outlook for the 2015 fiscal year, even as it posted a steep decline in Q2 net profit.
- The steelmaker says it now expects adjusted EBIT for the year to increase significantly to €1.6B-€1.7B, up from an earlier prediction of €1.5B.
- However, Q2 net operating profit plunged to €50M vs. analyst expectations for €104M and €271M in the year-ago quarter; Q2 adjusted EBIT rose 32% Y/Y to €405M from €306M, helped by cost-cutting measures.
- ThyssenKrupp says Q2 sales rose 7% Y/Y to €11B on organic growth in the capital goods businesses and positive currency effects; orders were up 2% at €10.4B, boosted by a record number of new orders at its elevator business, including high demand for new installations in the U.S.
ThyssenKrupp is a diversified industrial group. It has around 180,000 employees in over 80 countries developing ideas and innovations into solutions for sustainable progress.
Sector: Basic Materials
Industry: Electric Utilities
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