FRANKFURT, Germany — German heavy industry giant ThyssenKrupp raised its full-year forecasts Tuesday after better-than-expected earnings in the second quarter.
ThyssenKrupp, which runs its year from October to September, said in a statement that "against the background of the progress made in operating performance and the generally stabilizing economic conditions, management has specified and raised its forecast for the full year 2014/2015."
The group said it now expected underlying or operating profit to "increase significantly to 1.6-1.7 billion euros ($1.8-1.9 billion)."
With the exception of its steel business in the Americas — which was expected to only break even — "all business areas will generate significant positive contributions," the statement said. Group sales were expected to grow by a "single-digit percentage rate", and "management likewise expects a significant improvement in net income" from 195 million euros last year.
In its second quarter alone, the period from January to March, underlying or operating profit jumped by 32% to 405 million euros ($455.2 million), beating analysts' expectations.
Net profit, however, tumbled by 82% to 48 million euros ($54 million) as a result of one-off charges related to the sale of its stainless steel unit VDM.
Second-quarter sales grew by 7.0% to 10.995 billion euros ($12.36 billion), ThyssenKrupp said.
Copyright Agence France-Presse, 2015
