TKA.DE - thyssenkrupp AG

XETRA - XETRA Delayed Price. Currency in EUR
11.62
+0.22 (+1.97%)
At close: 5:35PM CET
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Previous Close11.40
Open11.39
Bid11.66 x 142800
Ask11.66 x 10700
Day's Range11.24 - 11.73
52 Week Range9.25 - 16.57
Volume3229084
Avg. Volume3,554,073
Market Cap7.3B
Beta (3Y Monthly)1.73
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.15 (1.32%)
Ex-Dividend Date2019-02-04
1y Target EstN/A
  • Thyssenkrupp in talks with Tesla about German factory: Handelsblatt
    Reuters

    Thyssenkrupp in talks with Tesla about German factory: Handelsblatt

    Thyssenkrupp is hoping to win contracts for a planned factory Tesla plans to build near Berlin, a board member of the German conglomerate told a business daily. "We are in talks over carrying out certain services," Klaus Keysberg, board member in charge of steel and materials services at Thyssenkrupp, told Handelsblatt, declining to be more specific. Thyssenkrupp makes everything from elevators and submarines to car parts, steel and fertilizers plants.

  • Major steel funds not yet approved - Thyssenkrupp labour leader
    Reuters

    Major steel funds not yet approved - Thyssenkrupp labour leader

    Much-needed funds for Thyssenkrupp's steel division, which could be turned into the conglomerate's profit engine, have not yet been approved by management, a leading labour representative said. "The management of Thyssenkrupp needs to earn that money first," Tekin Nasikkol, who heads the works council of Thyssenkrupp Steel Europe, said on Thursday, adding some members of the board were saying the unit needs too much money. Under plans revealed a day earlier, Thyssenkrupp's steel unit could become the company's new core profit driver following an expected sale of its elevator division.

  • Thyssenkrupp outlines steel unit overhaul - letter
    Reuters

    Thyssenkrupp outlines steel unit overhaul - letter

    Thyssenkrupp , whose attempt to merge its steel operations with a rival was thwarted by regulators earlier this year, now plans to transform the business into its biggest profit engine, according to an internal memo seen by Reuters. The German group told staff it aimed to boost earnings before interest and tax (EBIT) at Steel Europe by an average of up to 600 million euros (£515.45 million) over the coming years, helped by job cuts and selling more to the autos industry. On Wednesday, thousands of workers at Thyssenkrupp's elevator division staged protests at the group's headquarters in Essen, asking management for job protection.

  • Thyssenkrupp presents 'complex' turnaround plan for steel - workers
    Reuters

    Thyssenkrupp presents 'complex' turnaround plan for steel - workers

    DUISBURG/FRANKFURT (Reuters) - Ailing conglomerate Thyssenkrupp has worked out a new strategy for the group's steel business, a leading labour representative said on Tuesday, adding the roadmap included significant investments but also restructuring steps. The strategy paper was presented to the supervisory board of Thyssenkrupp Steel Europe on Tuesday, following labour protests at the division's headquarters in Duisburg, in the heart of the Ruhr area, Germany's industrial heartland. The unit's future hangs in the balance after a deal to combine it with the European division of Tata Steel collapsed earlier this year, forcing management to announce the reduction of 2,000 out of the unit's total 27,000 jobs.

  • Thyssenkrupp workers want clarity on company's steel plans
    Reuters

    Thyssenkrupp workers want clarity on company's steel plans

    Thyssenkrupp steel workers have demanded major investments and criticised management for delaying a presentation about its plans for the steel business. The steel business, whose roots go back more than 200 years, has suffered a sharp fall in profits and Thyssenkrupp is planning about 2,000 job cuts. "We demand a clear commitment from Thyssenkrupp with regard to steel," Detlef Wetzel, vice supervisory board chairman of Thyssenkrupp Steel Europe, told Reuters on Monday.

  • How the Steel Industry Made Millions From the Climate Crisis
    Bloomberg

    How the Steel Industry Made Millions From the Climate Crisis

    (Bloomberg Opinion) -- Europe’s steel industry is in crisis again and there’s no shortage of reasons for all the financial losses and job cuts. Stagnating demand, surplus production capacity, higher iron ore prices and a surge in imports caused by trade conflicts are just some of them.But when Tata Steel Ltd. announced 3,000 job losses at its European arm this week, the company also pointed to a “significant increase” in the cost of carbon emission permits.Blaming the CO2 price has become a common yet questionable refrain in the industry. ArcelorMittal offered a similar excuse when it announced big production cuts in May. British Steel Ltd.’s collapse that same month was also linked to its obligation to purchase expensive carbon credits.The reality looks rather different. Steel is responsible for about 7% of global emissions but even today the sector is mostly shielded from having to buy carbon pollution permits in Europe. Steelmakers are in a tight spot but they shouldn’t grumble about a policy that’s been lucrative for them in the past and whose purpose is to help them clean up their act.To recap, the EU’s emission trading system was created more than a decade ago to help mitigate the climate crisis by making polluters pay. Utilities, industrial plants and airlines are required to obtain permits to match how much they pollute. The reason for the industry’s complaints now is that the cost of those allowances has more than trebled in the past two years after the European Union tweaked the system.That’s theoretically difficult for steelmakers because they emit almost two metric tons of CO2 for every ton of steel produced. A roughly 50-euro ($55) CO2 price for each marginal ton of output is significant because the spread between steel prices and the cost of the raw materials needed to make it has fallen to about 250 euros a metric ton. “Considering that steel makers are barely profitable the pressure from CO2 prices is substantial,” says Benjamin Jones of CRU, a metals and mining consultancy. Yet all the steelmakers’ complaints ignore an important financial safety net for the industry. Because of the perceived threat of so-called “carbon leakage” (where companies decamp to places with cheaper pollution costs) the least polluting steelmakers still receive free allowances that cover 100% of their emissions.(1)“Given how generous free allocation has been, steel should be among the industries hurting the least from the carbon price,” says Jahn Olsen, a carbon analyst at BloombergNEF.Furthermore, the production cuts after the 2008-2009 recession left steelmakers with large surpluses of emission permits which they were free to keep or sell at a profit. While the extent of the industry’s windfall profit from this is disputed, one study found it could be 8 billion euros ($8.8 billion). Some steelmakers are still benefiting today.Tata Steel’s European arm generated 211 million pounds ($273 million) of income from selling surplus allowances in the fiscal year to March, its annual accounts show. It’s pretty bold of the steelmaker to call out the rising cost of pollution permits when it’s just booked a big profit from them. There are echoes here of what happened to British Steel,(2) which sold emission permits only to discover later that it needed them.(3) “The European steel sector is in a tough spot but to blame carbon pricing is disingenuous,” says Sam Van den plas, policy director at Carbon Market Watch. For now the largest and most technically advanced steelmakers probably aren’t having to fork out much for allowances.This will change gradually after 2021 when the so-called fourth phase of emissions trading begins. But the EU still expects to hand out 6.3 billion free permits to polluters during that period, worth more than 150 billion euros at current prices. For now ThyssenKrupp says the impact from carbon pricing is “marginal” and will probably remain so next year. It warns though of “considerable risks” in the post-2021 period.Tata says it expects to spend more than last year’s 211 million-pound gain on permits in coming years, but didn’t provide more detail.ArcelorMittal says it might have to pay out 5 billion euros between 2021 and 2030 at the current CO2 price. On an annual basis that’s about one-eighth of its analyst-estimated operating profit for 2021. This sounds a lot but it assumes the company makes no improvements in cutting pollution.Emission cuts by companies bound by the EU trading system have been fairly impressive but recent progress has come mostly from the power sector. That makes the bloc’s task of reaching climate neutrality by 2050 — something ThyssenKrupp and others have signed up to —  more difficult. Excluding power plants, the largest individual sources of carbon pollution in Europe are all steelworks.  In fairness, there’s an absence of carbon-cutting technologies in sectors like steel and cement. Techniques such as replacing coal with hydrogen in steel production show promise but most are still being trialed. Making them viable commercially would require a higher carbon price and massive investments, including on huge new sources of renewable electricity. Yet the free carbon allowances for steel companies probably didn’t motivate them enough to find more sustainable production methods. In her resolve to redouble the EU’s pollution-cutting efforts, European Commission President Ursula Von der Leyen has floated the idea of a carbon border tax on imports into the bloc to make sure domestic producers aren’t unfairly penalized.The feasibility of such a tax is unproven: Measuring the carbon content of manufactured good is tricky and the levy would have to reflect the fluctuating price of allowances. Even if it complies with World Trade Organization rules, a carbon tax might inflame trade tensions with the U.S.Naturally the steelmakers think a border tax is a great idea as it would expose them to less competition by deflecting “dirty” imports. Astonishingly, they’re lobbying to keep their free pollution allowances even if non-EU steelmakers are forced to pay the bloc’s carbon price. The local industry argues that its non-EU exports would become uncompetitive if it had to pay the full cost of permits while investing in emission-cutting innovations. Its lobbying sounds dangerously like an industry trying to have its cake and eat it.(1) The data show ArcelorMittal and Tata Steel receive allowances that exceedtheir emissions. However some of these must be handed to the power sector to account for the waste gases they process.(2) A company formed of assets sold by Tata Steel to Greybull Capital in 2016(3) Tata Steel sold the permits ahead of a planned merger with ThyssenKrupp's steel business which was then blocked on anti-trust grounds.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Thomson Reuters StreetEvents

    Edited Transcript of TKA.DE earnings conference call or presentation 21-Nov-19 1:00pm GMT

    Full Year 2019 Thyssenkrupp AG Earnings Call

  • Thyssenkrupp Set to Suspend Dividend
    Bloomberg

    Thyssenkrupp Set to Suspend Dividend

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Thyssenkrupp AG plunged the most in a year after moving to suspend dividend payments as it warned losses would deepen, underscoring the challenges facing executives trying to chart a path out of crisis.The German company will ask shareholders to approve suspending payments for the past fiscal year at a meeting in January and warned the financial situation may worsen as it restructures. Losses widened and debt surged in the year through September as a deteriorating economic environment compounded faltering performance at several units of the steel-to-submarines conglomerate.The shares fell as much as 12%, and were down 10% by 9:51 a.m. in Frankfurt, taking this year’s decline to 19%.“The performance of many of our businesses is not satisfying,” Chief Executive Officer Martina Merz said in a statement on Thursday, adding the company would press ahead with a sale or listing of its crown-jewel elevator unit and restructuring measures at other divisions.Once a paragon of German engineering might, Thyssenkrupp is fighting for survival in the teeth of a factory sector slowdown. The company has said it would pursue a sale or listing of its elevator division in order to stabilize its worsening balance sheet. The unit, which is riding a global megatrend for urbanization, was again a glimmer of light in an earnings statement that showed the firm’s cash and debt position worsening.Ingo Schachel, an analyst at Commerzbank AG, said the bank was “somewhat disappointed” by the outlook for 2020 as it implied “a notable increase of net debt and cash burn” in the first quarter.“The strategy update appears to pull the right levers, but for today, market focus will probably rather be on the short-term outlook for 2020 as many of the strategic steps were already anticipated,” Schachel said by email.READ: Steel Royalty No More, Thyssenkrupp Sells Itself Off to SurviveThyssenkrupp said its earnings performance for financial year 2019-20 was uncertain, but expected adjusted earnings before interest and taxes to be around this year’s level of 802 million euros ($890 million). The company also forecasts net losses will be significantly worse in this fiscal year due to restructuring costs.“The expenses for the intensification of restructuring will result in a significantly higher net loss for the year than in the previous year,” Thyssenkrupp said in the statement.Thyssenkrupp said it expected binding offers for the elevator unit in the next year. The company also said it has already received indicative offers from strategic and financial investors, and preparations for a possible initial public offering would be completed by the end of this year.The company said it would slash 640 jobs at its systems-engineering unit. It also hinted it would speed up plans to sell other businesses, and said it has earmarked a “mid triple-digit million” euro amount for pending restructuring measures in the current fiscal year.Thyssenkrupp reiterated it was prioritizing addressing challenges in its steel unit, with the aim of giving it “a long-term perspective,” and said an advisory group would present a plan to executives next month.(Updates shares in third paragraph)\--With assistance from Joe Richter, Richard Weiss and Nicholas Larkin.To contact the reporter on this story: William Wilkes in Frankfurt at wwilkes1@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Nicholas Larkin, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Thyssenkrupp, Kone discuss multi-billion euro break-up fee - sources
    Reuters

    Thyssenkrupp, Kone discuss multi-billion euro break-up fee - sources

    FRANKFURT/DUESSELDORF, Germany (Reuters) - Finland's Kone has proposed paying a multi-billion euro break-up fee to Thyssenkrupp in an effort to improve its chances in an auction for the German conglomerate's elevator business, three people familiar with the matter said. Kone, in a partnership with private equity firm CVC, is among suitors for Elevator Technology (ET), which Thyssenkrupp has put up for sale in a bid to pay down pensions and debt, and invest in restructuring its other struggling businesses. Under the plans, Kone would pay the break-up free - which one source put at 3 billion euros (£2.6 billion) - upfront, making it easier for Thyssenkrupp to accept a deal with the firm, which could face an antitrust review lasting more than a year.

  • A German Dynasty Sells Assets to Survive
    Bloomberg

    A German Dynasty Sells Assets to Survive

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.On the banks of the Ruhr river that flows through Germany’s industrial heartland lies a vast ornamental park with manicured gardens and exotic trees. At its heart sits a neoclassical manor with copper-green roof and Grecian pillars: Villa Huegel, the former home of steel magnate Alfred Krupp.Villa is a misnomer -- the place is more a palace than a residence. There are wood-paneled library rooms, elaborate Flemish tapestries and glittering chandeliers dripping from coffered ceilings. The mansion is a tribute to Krupp’s vast wealth and status as champion of Germany’s breakneck industrial revolution in the nineteenth century. If the Ruhr valley was the economy’s engine room, Villa Huegel was its command bridge.Today, Villa Huegel is a mausoleum of a bygone era. The storied Krupp name has been folded into the portmanteau of the Thyssen and Krupp steel dynasties that merged in 1999 but got little tangible done after that. Once on par with German engineering stalwarts like Siemens AG and Daimler AG, Thyssenkrupp is fading away as Germany’s sputtering economy and management missteps force the company to sell off units to plug holes in its balance sheet.Individual units may well fight on for years, but the bell has tolled for the conglomerate whose steel made the spire of the Chrysler building, powered the Nazi war machine and built the machines that drove China’s rapid growth in the late 20th century.The decline and fall of the Thyssenkrupp empire is a source of concern for politicians who see an omen for the German economy which until now held on to well-paid blue collar jobs. On Nov. 14, Germany releases economic data that may show Europe’s largest economy slipped into recession in the third quarter.Breakup Risk“This basic principle of the social market economy has always been particularly pronounced at Thyssenkrupp,” said German Labor Minister Hubertus Heil of the Social Democratic Party, a political group that’s seen its relevance similarly wane as Germany drifts away from old mass employment industries that formed its political bedrock. “Social responsibility must not be sacrificed to short-term investor interests in the stock market value.”The growing crisis at Thyssenkrupp is making investors’ and workers’ interests in a break-up increasingly aligned: the company needs the cash to pay pensions and keep itself afloat. The foundation that oversees Villa Huegel and is a big stakeholder relies on dividends to meet its outlays, including research grants, cultural bursaries and tending the manicured property.Executives in Essen are currently in talks with suitors for Thyssenkrupp’s most prized asset: the elevator division, a 15-billion euro ($16.56 billion) unit that’s drawn interest from several parties. The firm is also looking at selling its automotive-components operations where profits are falling due to Germany’s worsening car sector. Its heavy plate steel division –- the successor of the Krupp steel mills that fortified Adolf Hitler’s tanks and battleships – is also on the chopping block.‘Downward Trend’“This is the continuation of a downward trend that started after World War II,” said Albrecht Ritschl, a professor of economic history at the London School of Economics. “German heavy industry has never been fully viable under world market conditions, owing to its location atop coalfields that were plentiful but expensive to exploit.”Along with its debt, ignominies for the one-time swaggering giant keep stacking up: the firm tumbled out of Germany’s blue-chip DAX index in September and was replaced by jet-engine manufacturer MTU Aero Engines AG. It’s an exit emblematic of how the industrial future of Europe’s biggest economy rests with high-tech, high-margin players rather than steelmakers.The company’s crisis has put it in the cross hairs of activist investors pushing for change. Sweden’s Cevian Capital AB is the second-biggest shareholder behind the foundation. A spokeswoman for Thyssenkrupp referred to a statement from CEO Martina Merz in September, when she said the company would continue with its strategic realignment as it seeks to regain confidence of investors.Chinese CompetitionThyssenkrupp’s demise points to larger fault lines running through Germany in the twilight of Angela Merkel’s long reign as chancellor. In the short-term, the export-led growth model faces threats from U.S. President Donald Trump’s unresolved trade war with China. Further out, Asian challengers are increasingly competitive in the advanced manufacturing niche that previously proved a rich vein for German jobs.The Made in China 2025 plan has helped firms become the hottest competitor for many German manufacturers, according to a survey from the German Chambers of Commerce. Thyssenkrupp has seen margins at its car-parts businesses steadily decline as that competition from Asian challengers intensifies.“Europe will have trouble remaining in the game against an ambitious Chinese state, which will continue helping its companies in key industrial sectors in order to make China an advanced, sophisticated economy,” said Philippe Le Corre, an expert in Chinese and European economic relations at Carnegie Endowment for International Peace.Steelmaking, Thyssenkrupp’s heart and soul, is facing an existential crisis in Europe. While the cost of permits to emit carbon dioxide steadily rise, cheap imports from abroad continue to crush prices. An attempt by Thyssenkrupp to merge its steel operations with the European unit of India’s Tata Steel Ltd. was scrapped amid European Union antitrust concerns.Bad DecisionsStill, many of Thyssenkrupp’s wounds are self-inflicted. A 2005 decision to conquer the American steel market haunts the company to this day. Management spent more than 12 billion euros for a steel mill in Brazil and a plant in Alabama. Depleted from a downturn in the global market and cost overruns in Brazil, Thyssenkrupp was eventually forced to pull the plug a decade later, a retreat that racked up a total loss of more than 8 billion euros, ranking as one of the biggest failed investments in German corporate history.The combination of flawed business decisions and rising costs have led Thyssenkrupp to burn cash in 10 out of 13 years since 2007, according to data compiled by Bloomberg. Despite a sustained economic boom in Germany, the firm’s overall cash outflow amounts of 5.1 billion euros in that time. Its pension deficit hit 743 million euros in the first nine months of 2019.Add to that management chaos and ballooning administrative costs at the firm’s Essen headquarters. Chief Executive Officer Guido Kerkhoff was ejected after less than a year after failing to sell off units, the same fate suffered by his predecessor, Heinrich Hiesinger, who stepped down amid pressure from activist funds Elliott Capital Management and Cevian.And as Villa Huegel still basks in a glamorous past, hosting award ceremonies and classical concerts in the ballrooms, austerity is starting to bite at Thyssenkrupp’s headquarters a 20-minute drive north of the Ruhr river. Here, office workers on the campus of what was once Germany’s biggest company have been told to display their frugal side and think twice before ordering logo-emblazoned electric blue pens and notebooks.(Updates with new suitor for elevator business)To contact the reporters on this story: William Wilkes in Frankfurt at wwilkes1@bloomberg.net;Eyk Henning in Frankfurt at ehenning1@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Thyssenkrupp poised to get elevator bids this week - sources
    Reuters

    Thyssenkrupp poised to get elevator bids this week - sources

    FRANKFURT/DUESSELDORF (Reuters) - Thyssenkrupp will receive first bids for its elevator division this week, three people familiar with the matter said, as major stakeholders differ over whether the conglomerate should sell a majority stake in its most profitable asset. Finnish rival Kone will submit an indicative bid for Elevator Technology by Friday, teaming up with private equity firm CVC, which is poised to buy assets that may have to be divested for antitrust reasons, the people said. This plan would help Kone to realise its ambition of becoming the world's largest elevator maker, overtaking Switzerland's Schindler and United Technology Corp's Otis.

  • Thyssenkrupp board member commits to steel ahead of unit review
    Reuters

    Thyssenkrupp board member commits to steel ahead of unit review

    Thyssenkrupp will remain committed to its Steel Europe division, which faces 2,000 layoffs, a board member said on Thursday, just weeks before the conglomerate presents a new strategy for the division. Steel and materials trading will form the core of Thyssenkrupp after the planned full or partial sale or listing of its prized elevator unit, and divestment of the majority of its car parts, plant engineering and shipbuilding divisions. "Together with the team at Steel Europe we will build a good future for steel," Klaus Keysberg, who is in charge of Thyssenkrupp's steel and materials trading units, said at an event in Dortmund in the Ruhr region, Germany's industrial heartland.

  • Is thyssenkrupp (ETR:TKA) Using Too Much Debt?
    Simply Wall St.

    Is thyssenkrupp (ETR:TKA) Using Too Much Debt?

    David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

  • Thyssenkrupp to cut admin jobs as part of restructuring - sources
    Reuters

    Thyssenkrupp to cut admin jobs as part of restructuring - sources

    Thyssenkrupp is slashing some administrative jobs to cut down on the more than 2 billion euros (1.8 billion pounds) of costs it incurs in that field each year, two people familiar with the matter told Reuters on Monday. A majority of the 300 administrative roles at Thyssenkrupp's car parts and plant engineering divisions will be cut, the sources said. Thyssenkrupp declined to comment.

  • New Thyssenkrupp CEO to brief top managers on Tuesday - sources
    Reuters

    New Thyssenkrupp CEO to brief top managers on Tuesday - sources

    Thyssenkrupp's new chief executive Martina Merz will brief top managers about the steel-to-submarines conglomerate's organisational structure on Tuesday, three sources familiar with the matter told Reuters. The German group announced in May it was open to new ownership structures for its car parts, plant engineering, marine systems and elevators units, but investors criticised a lack of progress leading to the dismissal of CEO Guido Kerkhoff. Merz will address managers as the company reviews takeover offers for its elevators division and as investors question the viability of its steel and materials trading divisions in the long run.

  • Thyssenkrupp investor Cevian: 'We never demanded special dividend'
    Reuters

    Thyssenkrupp investor Cevian: 'We never demanded special dividend'

    Swedish fund Cevian, which holds an 18% stake in Thyssenkrupp , has never demanded a special dividend from the ailing conglomerate, a spokesman told Reuters, squashing speculation about such a move. The spokesman said that Cevian, Thyssenkrupp's second-largest shareholder, had previously participated in two capital increases and voted against proposals to pay a dividend in 2017 to improve the group's balance sheet. Cevian, which first disclosed a stake in Thyssenkrupp six years ago, has long criticised the group's complex structure, which spans capital goods ranging from elevators to submarines, arguing that individual units could thrive better on their own.

  • Thyssenkrupp proceeds with elevator sale after CEO switch: sources
    Reuters

    Thyssenkrupp proceeds with elevator sale after CEO switch: sources

    FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp will weed out some potential suitors for its elevator unit within the next two weeks, two people familiar with the matter said, as the closely-watched auction gathers pace regardless of the planned ousting of CEO Guido Kerkhoff. Bidders invited to the next round will likely include private equity groups KKR , Blackstone , CVC [CVC.UL] and Clayton Dubilier & Rice as well as strategic firms Kone and Hitachi , one of the sources said. A consortium consisting of private equity firms Advent and Cinven and the Abu Dhabi Investment Authority, the world's third-biggest sovereign wealth fund, is also expected to be included, the people said.

  • Thyssenkrupp faces more turmoil as CEO Kerkhoff set to leave
    Reuters

    Thyssenkrupp faces more turmoil as CEO Kerkhoff set to leave

    FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp said it was preparing to replace Chief Executive Guido Kerkhoff, making him the latest casualty at the German steel-to-submarines conglomerate which has been in crisis mode for more than a year. The plan to ditch Kerkhoff after 14 months at the helm follows a loss of confidence among key investors, who no longer believe the 51-year old can deliver on a turnaround that includes selling the group's most profitable division, elevators. Since Kerkhoff became CEO in July 2018, the group has issued four profit warnings.

  • Thyssenkrupp scraps dividend as pain continues
    Reuters Videos

    Thyssenkrupp scraps dividend as pain continues

    Troubled times continue at Thyssenkrupp. The German conglomerate has scrapped its dividend, it said on Thursday. For the first time in six years. A turnaround for the ailing giant: still elusive, according to new boss Martina Merz. SOUNDBITE (German) MARTINA MERZ, CHAIR OF THYSSENKRUPP'S EXECUTIVE COMMITTEE: "The group is in a difficult position, that's not something which we can gloss over. The current situation requires sober consideration, a thorough look at the facts and dealing with several different options. For that reason we're not able to announce a clear plan for the future of Thyssenkrupp today." Merz took over from Guido Kerkhoff at the start of October. He'd been at the helm for only 14 months ... And struggled to halt Thyssen's decline. Latest results show a five-fold increase in its full-year net loss - to 304 million euros. The last 18 months have seen four profit warnings and two failed attempts to restructure. SOUNDBITE (German) MARTINA MERZ, CHAIR OF THYSSENKRUPP'S EXECUTIVE COMMITTEE: "We will address our performance, pushing forward with our elevator negotiations, giving the steel business a future and continuing to develop our organisation." The sprawling conglomerate does everything from make steel to build industrial plants. Hope for relieving pressure on its balance sheet centres on a sale of its prized elevators division. That could raise 17 billion euros - and there are potential buyers, Thyssen said. But in the meantime, the pressure on its share price ramps up: it lost ten per cent in morning trade. Thyssen workers are next in the firing line: 6,000 job cuts are already planned. And more still, a board member said, can't be ruled out.