TKAMY - Thyssenkrupp cuts full-year profit guidance after steel writedown hits Q3

Thyssenkrupp ( OTCPK:TYEKF ) ( OTCPK:TKAMY ) on Thursday reported FQ3 adjusted earnings that beat estimates but lowered guidance for full-year net profit after rising interest rates caused a writedown at its steel division.

The company said Q3 adjusted EBIT rose to €721M ($742.6M), up from €266M in the year-earlier quarter, and a 26% Y/Y increase in sales to €10.95B; analyst consensus had expected adjusted EBIT of €705.4M on revenues of €10.5B.

Q3 volumes at Thyssenkrupp's ( OTCPK:TYEKF ) ( OTCPK:TKAMY ) core European steel business fell because of supply shortages and weaker demand, but sales and order intake rose due to higher steel prices.

As a result, Thyssenkrupp ( OTCPK:TYEKF ) ( OTCPK:TKAMY ) said it now expects full-year net income in the high triple-digit million-euro range, below its previous projection of at least €1B.

The company reaffirmed all other full-year guidance, including adjusted EBIT of at least €2B and free cash outflow before mergers and acquisitions in the middle triple-digit million-euro range.

"A return to a sustained positive free cash flow before M&A on a full-year view... remains our priority goal," CFO Klaus Keysberg said .

For further details see: