© Reuters. FILE PHOTO: A logo of Thyssenkrupp AG is pictured at the company’s headquarters in Essen, Germany, November 21, 2018. REUTERS/Thilo Schmuelgen
By Christoph Steitz
FRANKFURT (Reuters) -Thyssenkrupp on Thursday said it was now targeting the upper end of its operating profit outlook range in 2023, citing a robust third quarter that showed better-than-expected results at its materials and steel units.
The engineering and steel production conglomerate now expects adjusted earnings before interest and tax (EBIT) in the high triple-digit million euro range, having previously forecast it to be in the mid to high triple-digit million range.
“Thanks to the measures that have been initiated and implemented, Thyssenkrupp (ETR:) continued its robust business performance in the third quarter,” Miguel Lopez, who took over as CEO in June, said.
EBIT at the company’s materials and steel divisions fell to 78 million and 164 million euros, respectively, but that was still higher than the Refinitiv forecast for 49 million and 151 million euros.
The company, which said third-quarter adjusted EBIT fell by two thirds, has been making strides in its turnaround in recent months, successfully listing its hydrogen unit Nucera and getting Brussel’s ok for 2 billion euros in steel subsidies.
Thyssenkrupp confirmed that it was still targeting a spin-off solution for both its steel division as well as its defence unit Thyssenkrupp Marine Systems.
Its closely watched free cash flow before M&A, a key indicator for Thyssenkrupp’s ability to generate cash, turned positive in the quarter to 347 million euros, up from a negative 412 million last year.