ThyssenKrupp’s operating profit nearly quadrupled in the first quarter, as its two largest units – steel and materials trading – benefited from significantly higher steel prices.
Adjusted earnings before interest and taxes amounted to 378 million Euros in the period October-December, in the first quarter of the year, higher than 78 million a year ago.
However, cash flows before mergers and acquisitions were negative 858 million Euros, due to the increase of working capital due to “ongoing problems in the supply chain, with the resulting delays towards customers”, the company stressed.
“We had a good quarter,” said Klaus Keysberg, chief financial officer. “But we are still not where we want to be, and we continue to work hard to implement our plan.”
The group, which manufactures everything from car parts to submarines, continued to expect adjusted EBIT 1.5-1.8 billion euros.
Adjusted EBIT in the group’s steel unit, which could split at some point, increased sixfold to € 124 million, as higher sales prices offset the strong rise in raw materials and energy costs.