thyssenkrupp: shares down after mixed quarterly results
(CercleFinance.com) - thyssenkrupp on Tuesday confirmed its forecasts for the current fiscal year 2018/2019, but warned that economic and political uncertainties are increasing.
First-quarter adjusted earnings before interest and tax (EBIT) fell to 168 million dollars, from 265 million euros a year ago, due to higher start-up costs for customer projects, higher material costs in China and tariffs on material imports, the German industrial group said.
thyssenkrupp's net income for the last quarter of 2018/2019 came in at 145 million euros, from 93 million euros a year ago as the US tax reform had a negative one-off impact on profit.
Analysts at UBS said the performance was "mixed."
"While earnings came in-line, free-cash flow disappointed, doubling net debt," the broker said.
thyssenkrupp affirmed its outlook for adjusted EBIT of over 1 billion euros, from 706 million euros in the previous year.
The company also said that preparations to split the group into two industrial and materials businesses were "fully on schedule"
Shares are currently down 2.1% at 14.3 euros, making them the biggest loser on Germany's blue-chip DAX index, which is up 1.2%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
First-quarter adjusted earnings before interest and tax (EBIT) fell to 168 million dollars, from 265 million euros a year ago, due to higher start-up costs for customer projects, higher material costs in China and tariffs on material imports, the German industrial group said.
thyssenkrupp's net income for the last quarter of 2018/2019 came in at 145 million euros, from 93 million euros a year ago as the US tax reform had a negative one-off impact on profit.
Analysts at UBS said the performance was "mixed."
"While earnings came in-line, free-cash flow disappointed, doubling net debt," the broker said.
thyssenkrupp affirmed its outlook for adjusted EBIT of over 1 billion euros, from 706 million euros in the previous year.
The company also said that preparations to split the group into two industrial and materials businesses were "fully on schedule"
Shares are currently down 2.1% at 14.3 euros, making them the biggest loser on Germany's blue-chip DAX index, which is up 1.2%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.