Gloomy from Gardells German favorite – Dagens Industri

Updated 2016-05-10 10:45. Published 2016-05-10 09:24

Thyssen Krupp owned to about 15 percent by the Swedish financial profile Christer Gardell activist fund Cevian, according to Reuters.

the company reports a net profit for the quarter from January to March was 27 percent higher compared with a year earlier, while sales shrank by 10 percent.

Earnings for the second quarter in the company’s split financial year amounted to EUR 326 million, equivalent to more than 3 billion. The profit was slightly stronger than expected, speaking to Bloomberg analyst survey pointed to 2.7 billion.

At the same time lowers the Thyssen Krupp profit forecast for the fiscal year 2015/2016 to the equivalent of SEK 13 billion ( 1.4 billion EUR), from the previous forecast, the corresponding 14.9 to 17.6 billion.

the lowered forecast is justified by the “extremely difficult conditions in the commodity market,” the report .

the company notes a recovery of prices for steel and other raw materials, but the upturn is said to have come later and from a lower level than the company previously expected, said CEO Heinrich Hiesinger in Commenting on the report.

steel prices quoted in February its lowest level in nine years under the pressure of large volumes of cheap Chinese steel on the world market, but has risen since then.

the production of industrial products including elevators and automotive components, showed increased profits, sales and orders. The device will during six months from April to September to further improve the operating result compared to the fiscal first two quarters, according to the report.

Even the steel business, which account for about half of sales, will show ” significant improvements “in the six months from april to September, driven by konstadsbesparingar and an improvement on the market, the company said. It assumes that the Brazilian currency “relatively stable”.

Christer Gardell’s Cevian made in January footprint by taking the battle to no dividend in Thyssen Krupp this year, citing the company’s indebtedness. But the initiative was voted down. Instead, the dividend was increased from 1 to 1.4 equivalent per share.