ThyssenKrupp Q3 pretax up on high steel prices, raises FY goals UPDATE

ThyssenKrupp Q3 pretax up on high steel prices, raises FY goals UPDATE

	Published : Fri, 10 Aug 2007 07:47 By : Agencies Print this Story

(updates with new orders, division pretax)

FRANKFURT (Thomson Financial) - ThyssenKrupp AG said its third quarter pretax profit improved as high steel prices boosted earnings of its steel and stainless steel divisions.

Third quarter pretax profit for the quarter to June 30 improved 33.9 pct to 1.219 bln eur compared with 806 mln eur in the year-earlier period.

Analysts polled by Thomson Financial News expected pretax profit of 1.03 bln.

Net income came in at 759 mln eur, after last year's 468 mln eur, easily beating a consensus of 624 mln eur for the quarter, while sales increased to 13.4 bln eur from 12.13 bln.

The steel-maker raised its full-year outlook and now expects pretax profit of 3.6 bln eur compared to a previous forecast of 3.5 bln eur. It also revised up its 2007 sales forecast, now saying it expects it to grow to 'over 50 bln eur' from the previous guidance of 'around 50 bln eur'.

ThyssenKrupp confirmed its mid-term guidance of sales reaching 60 bln eur and pretax profit of 4 bln eur, both by 2010.

It also reiterated its long-term outlook for sales at 65 bln eur and pretax profit of 4.5-5 bln eur. It did not give a specific time frame.

ThyssenKrupp said its new orders rose to 15.55 bln eur during its third quarter, an increase of 25 pct compared with 12.44 bln last year.

In the steel division, pretax profit improved to 428 mln eur, up 9.8 pct from 386 mln eur while in the stainless steel division, which benefited from high nickel prices, it jumped 57.4 pct to 296 mln eur from 126 mln.

The technologies division reported a strong increase in new orders to 5.7 bln eur from 2.69 bln, thanks to new frigate orders. Pretax profit in the division edged to 155 mln eur from 151 mln.

In ThyssenKrupp's elevator division, pretax profit increased 7.5 pct to 106 mln eur from 98 mln. The company said pretax profit in Europe fell significantly short of the year-earlier level, but higher earnings in the US compensated for that.

frederik.richter@thomson.com

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