ThyssenKrupp reported that its sales in the first 9 months increased year-on-year by 7 percent to a total €32.2 billion (prior year €30.1 billion).
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Positive exchange rate and portfolio effects and solid organic growth in the components and elevator businesses clearly outweighed the effects of steeply declining material and steel prices. On a comparable basis the increase was 1 percent.
Adjusted EBIT from continuing operations in the first 9 months increased significantly by 33 percent to €1,261 million (prior year €945 million). The 3rd quarter contributed €539 million to this, improving by 33 percent compared with the 2nd quarter. The main driver of this improvement was the successful implementation of efficiency programs.
Altogether the ThyssenKrupp Group generated net income of €279 million in the first 9 months (prior year €242 million). This includes the write-down taken in connection with the sale of the VDM group in the 2nd quarter 2014/2015. After deducting minority interest, net income for the period was €297 million (prior year €244 million); earnings per share came to €0.52 (prior year €0.44).
At €(499) million, free cash flow before divestments in the first 9 months improved year-on-year by €446 million (prior year €(945) million), but as expected remained clearly negative.
This was due mainly to a temporary increase in net working capital, payment deferrals, and lower order intake at Industrial Solutions. The 3rd quarter showed an improvement quarter-on-quarter and year-on-year and was already clearly positive at €206 million.
Net financial debt of the full Group increased by almost €0.7 billion to €4.4 billion in the reporting period. The increase was due mainly to the negative free cash flow and currency effects.
Quarter-on-quarter net financial debt was down by €0.2 billion. Equity at June 30, 2015 came to €3.5 billion, up by over €0.3 billion from the end of fiscal 2013/2014.
The targets for the Group's key performance indicators for the full year 2014/2015 were confirmed: The Executive Board expects a clear increase in adjusted EBIT to €1.6 -1.7 billion. ■
A very active and complex mid-May weather pattern is set to produce numerous areas of severe weather, heavy rain, high winds, and anomalous temperatures through this weekend.