Thyssenkrupp halfway through restructuring, higher margins expected by Reuters in 2022

By Victoria Waldersee and Tom Käckenhoff

BERLIN (Reuters) – The radical restructuring of Thyssenkrupp (DE:), which has led to a series of radical restructuring and transfers, has come to a halt, with the group on track to increase sales and margins in the coming years, its management team said in its Capital on Thursday. Market Day.

The expanding conglomerate began to eliminate divisions in 2020, including selling its profitable elevator business for $ 17.2 trillion ($ 19.5 trillion) in an attempt to reduce debt by the same amount and reduce pension liability barriers.

The German steel submarine conglomerate expects to adjust its 4-6% margin in the medium term and aims to regain the ability to pay a dividend consistently, in a note made before the presentations. The Group reported an adjusted margin of 2.3% for the whole of 2020/21.

“We are constantly pushing for a complete transformation of the team,” CEO Martina Merz said on Thursday, adding that the sale of the elevator division was a difficult but necessary step. “Now the focus is on preparing for the next divestment package.”

Thyssenkrupp’s two-year review has so far included selling its mining technology business to FLSmidth in Denmark and disposing of its infrastructure and carbon components.

These transactions are expected to bring in a high figure of three million euros to strengthen the company’s net financial position and pension liabilities, Thyssenkrupp said.

The next line is the division of marine systems, which can see cooperation, consolidation or autonomous scenario, and the construction and chemical divisions of the cement plant, whose future the company will soon decide.

Further details on the initial public offering of its hydrogen division, Uhde Chlorine Engineers, scheduled for early next year, will be announced on January 13, the capital markets day.

Higher material prices and widening both material and steel margins should drive higher sales and profits in the first quarter of next year, Klaus Keysberg, chief financial officer, said.

The Group had sales of € 7.3 billion and EBIT of € 78 million in the first quarter of 2020/21.

In terms of medium-term EBIT margin targets, divisions accounted for at least 10% for industrial components and 7-8% for automotive, with 80% of sales generated from components not used in combustion engines.

($ 1 = $ 0.8822)