Monday, February 09, 2009

ThyssenKrupp profits slump

ThyssenKrupp AG, Germany’s largest steelmaker, are expected to announce  first-quarter profit down by 69 percent as demand for the metal slumped at the fastest rate since World War II.

Net income dropped to 135 million euros ($174 million) in the three months through December from 435 million euros a year earlier, according to the median estimate of seven analysts surveyed by Bloomberg. Sales fell 6.5 percent to 11.5 billion euros, the survey shows.

German steelmakers are slashing production as carmakers and builders, their main clients, reduce orders because of tightened credit markets and consumer reluctance to spend in a recession. Dusseldorf, Germany-based ThyssenKrupp is shelving investments to preserve cash and has joined industry leader ArcelorMittal in firing employees to cut costs.

Read the full story at Germany


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