Thyssenkrupp expects net income of € 0.1 bn - adversely affected by provisions for cartel proceedings

2018-11-08

Nov. 8, 2018 - Thyssenkrupp Steel Europe AG, alongside other steel companies and associations, is the subject of ongoing investigations by the Federal Cartel Office into alleged cartel agreements relating to the product groups heavy plate and flat carbon steel. The pending investigations concern, in particular, allegations concerning collusion in the determination of surcharges and premiums for steel prices. thyssenkrupp takes this matter very seriously and, with external support, has conducted its own internal investigation of the matter. Based on the facts currently known to us, we cannot exclude substantial adverse consequences with regard to the Group’s asset, financial and earnings situation. Due to new developments in the investigation process, thyssenkrupp has decided to accrue risk provisions in the consolidated financial statements. This will result in a net income for the year below the previous year's level (net income for the 2017/2018 financial year is expected to be € 0.1 billion, compared with € 271 million in the previous year).

In addition, thyssenkrupp has decided to set aside provisions for risks arising from quality issues in the Components Technology business area. Together with production and shipping restrictions at Steel Europe in the 4th quarter and earnings at Elevator Technology below expectations in the 4th quarter, this means that adjusted EBIT in 2017/2018 is expected to be € 1.6 billion.

The consolidated financial statements for the 2017/2018 financial year will be published as planned on 21 November 2018.