Thyssen steels itself for big drop

By Erich Reimann | February 14, 2009, Saturday |

Print Edition

THYSSENKRUPP AG,Germany's largest steel maker, announced yesterday a huge drop in profit in the fiscal first quarter and that it would cut jobs as the world economic crisis caused a sharp fall in demand for steel.

The Duesseldorf-based company said that net profit from October to December fell 63 percent to 163 million euros (US$210 million). Sales for the quarter fell by 6 percent to 11.5 billion euros.

Thyssen said that orders for steel during the period fell by nearly 40 percent, while stainless steel demand fell 55 percent. The company said as a result it would cut jobs in the steel division but wasn't specific about the number.

The company has already cut payrolls by 3,000 people in the past four months, although those jobs were mainly filled by temporary workers.

"The drastic, and in this measure unforeseeable, fall in demand in steel and stainless steel and in international (building materials) affected our business considerably," said Chief Executive Officer Ekkehard Schulz. "In the 2008-2009 business year, we expect a significant decline in sales."

Schulz said that the company expected similar business conditions in the second quarter and that a full-year outlook was difficult to make given the ongoing economic situation. Still, he expects that Thyssen will be able to post a profit for the full year.

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Thyssen steels itself for big drop

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