FRANKFURT: German industrial conglomerate Thyssenkrupp reported a sharp fall in annual profits after months of boardroom turmoil and a cartel probe, as it prepares to tackle a massive restructuring.
The group reported net profit of 60 million euros ($68.4 million) for its 2017-18 financial year to September, down 78 per cent after taking into account the sell-off of its Americas steel business.
Sales rose 3.0 per cent to 42.7 billion euros.
“The past fiscal year was a turbulent and challenging one,” chief executive Guido Kerkhoff said in a statement.
With German authorities investigating possible collusion between firms on prices for certain types of steel, Thyssenkrupp said it had set aside “a provision for antitrust risks” that impacted on its bottom line.
It did not reveal the amount.
Meanwhile, on the operational side, the industrial plant making division suffered from higher-than-expected costs on some contracts and made a 255 million euro operating loss.
Higher raw materials costs also weighed on the annual result.
Looking ahead, the company disclosed for the first time that its planned split into two separate groups — forced through after activist shareholders pushed out the former chief executive and chairman — will entail costs of more than 500 hundred million euros.
While the initial division will be painful, executives expect a payoff in the shape of “a positive impact on equity and the balance sheet” once the move is completed by late next year. — AFP
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