Eat. The new Thyssenkrupp boss López presents his first interim report. In view of shrinking profits, he is planning a “performance program”.
The first interim balance of the new Thyssenkrupp boss Miguel López is peppered with minus signs. Thyssenkrupp posted significant declines in the months of April to June compared to the same period last year. Incoming orders were lower, sales and profits fell. In particular, falling steel prices had a negative impact, according to the company. Earnings before interest, taxes, depreciation and amortization (“adjusted EBIT”) in the third fiscal quarter shrank from 721 million euros in the previous year to 243 million euros – albeit “as expected”, as Thyssenkrupp emphasizes.
The new CEO López, who only took over his job from his predecessor Martina Merz at the beginning of June, describes Thyssenkrupp’s development as “robust”. The management had adjusted to a difficult economic environment months ago. In view of the targeted results for the full fiscal year, which traditionally ends in September at Thyssenkrupp, the Thyssenkrupp Executive Board is now even more confident and is aiming for a figure in the high three-digit million euro range for operating profit (“adjusted EBIT”). area”. So far, there has only been talk of a “mid to high three-digit” million sum. In terms of net income, Thyssenkrupp expects “at least to break even”.
López boasts steel production and Nucera IPO
López has had two successes in his short tenure so far. The Dortmund-based hydrogen subsidiary Nucera got off to a successful start on the stock exchange, and the Thyssenkrupp steel division has secured billions in government funding for the conversion of the Duisburg site. “Both successes underscore our role as a pioneer and shaper of the green transformation,” comments the new Thyssenkrupp boss López.
The manager, whose full name is Miguel Ángel López Borrego, is the first Spaniard to head the traditional Essen group, which employs almost 100,000 people. In the company, López is optionally called “Hessian Spaniard” or “Spanish Hesse”. Because the longtime Siemens employee has Spanish citizenship, but his place of birth is Frankfurt am Main.
The Thyssenkrupp management expects the IPO of the hydrogen subsidiary Nucera in particular to have a positive effect on the annual balance sheet. With the sale of shares in the company that manufactures electrolysis systems for hydrogen production, a lot of money comes into the coffers. According to the company, Nucera will receive gross proceeds of around EUR 526 million as a result of the IPO. Thyssenkrupp could also book around 52 million euros in connection with the transaction. “Both amounts will have a positive effect on Thyssenkrupp’s net financial position in the fourth quarter,” the company said in its interim report.
Thyssenkrupp board plans new “performance program”
In the past few years, money has all too often flowed out of the cash register at Thyssenkrupp – and not enough has come in. López wants to reverse the trend. “Three topics are top of mind for me: the further development of the group, performance and the green transformation,” López told our editorial team shortly before he started as head of Thyssenkrupp. “On top of that, there is digitization, which is also crucial.”
The company strikes a similar note in the first interim balance sheet presented by López. “Improving performance has the highest priority and is decisive for the further strategic direction of the company,” the company emphasized in a statement on the quarterly figures. “A new, holistic performance program” is currently being developed. The aim is to “further increase the efficiency of the business”. Among other things, the focus is on “a stricter alignment of all transactions with the competitive level” and “stricter return and value-added criteria for investment decisions”. The program should be “rolled out promptly”.
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