German conglomerate Thyssenkrupp AG on Wednesday raised its full-year outlook for the first time in nearly four years, citing turnaround efforts as well as improved demand for automotive components and materials.
"In a continuing uncertain market environment, we had a good first quarter: we're noticing signs of an economic recovery and our measures to improve performance in the businesses are starting to bear fruit," Chief Executive Officer Martina Merz said.
The group now expects to almost break even on an adjusted operating profit level, having previously forecast a mid-triple-digit million euro loss in the year to September.
Thyssenkrupp's steel division, which could be sold, spun off or kept, swung to an adjusted operating profit of 20 million euros ($24 million) in the first quarter, compared with a loss of 127 million in the same period last year.
"The group might have turned the ship just in time," a Frankfurt-based trader said, adding that the company's operating units were profitable in the quarter. "Almost can't remember last time we have seen this.
Thyssenkrupp's shares were indicated to open 6.6% higher in premarket trade.
On a group level, adjusted operating profit came in at 78 million euros in the October-December quarter, a level that will decline in the January-March period, the company said.
Published 10 February 2021, 08:26 IST