Thyssenkrupp, the German industrial company, is set to announce its fiscal third-quarter sales results on Thursday. Analysts' consensus, compiled by Vara Research and provided by the company, forecasts sales of €9.78 billion ($10.76 billion) for this quarter. This is a comparison to the sales figure of €10.95 billion reported in the same period of the previous year.

Adjusted EBIT

The company-provided consensus also estimates adjusted earnings before interest and taxes (EBIT) at €248 million for the third quarter. This is significantly lower than the reported figure of €721 million in the same period last year.

Free Cash Flow Pre-M&A

Thyssenkrupp is expected to report a free cash flow of €127 million before mergers and acquisitions (M&A) during the quarter. This is a notable improvement from the cash outflow of €412 million posted in the corresponding three months of the previous year.

Key Highlights to Observe

It will be crucial to keep an eye on the following factors as Thyssenkrupp unveils its third-quarter results:

STEEL EUROPE: Analysis and Expectations

Deutsche Bank analyst Bastian Synagowitz anticipates a positive performance from Thyssenkrupp in the upcoming quarter. Despite anticipated challenges in its material-services and multitracks divisions, the steel business is projected to catch up on margin conversion. This is expected to compensate for any potential weaknesses in other areas.

  • Steel Europe's Performance:
    • Analysts predict quarterly adjusted EBIT to reach EUR160.2 million.
    • Sales for the quarter are projected to reach EUR3.08 billion, according to company-provided consensus.

Notably, in the same period last year, Steel Europe achieved EUR376 million in adjusted EBIT, with sales totalling EUR3.56 billion.

Thyssenkrupp's Strategic Restructuring Continues

Thyssenkrupp, the industrial conglomerate, has demonstrated its commitment to streamlining its operations with the recent IPO of its electrolyzers business, Nucera. Under the stewardship of Chief Executive Miguel Angel Lopez Borrego, the company has shown a readiness to make decisive decisions to simplify its structure. Baader Helvea analyst Christian Obst believes that Thyssenkrupp's marine business could be the next area to undergo significant changes.

For some time now, Thyssenkrupp has been exploring options for its marine-systems and steel Europe businesses. Following the successful IPO of Nucera, it is now expected that the company's chief executive will intensify efforts to find a solution for these divisions. Deutsche Bank also highlights the need for Thyssenkrupp's management to continue reducing complexity. In addition, with some key units experiencing performance challenges, there is a possibility that further cost-cutting measures may be necessary.

Thyssenkrupp's ongoing restructuring efforts illustrate its determination to optimize operations and drive sustainable growth. The company is actively responding to market dynamics and seeking opportunities to thrive in a rapidly evolving business landscape.

By Pierre Bertrand

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