Thyssenkrupp said on Thursday that operating profit rose nearly fivefold in its first quarter, as its two biggest divisions - steel and materials trading - benefited from significantly higher steel prices.
Adjusted earnings before interest and tax (EBIT) came in at 378 million euros ($432 million) in the October-December period, the first three months of the group's fiscal year, up from 78 million a year earlier.
Free cash flow before M&A, however, was at a negative 858 million euros due to a rise in working capital from "ongoing bottlenecks in the supply chain with the resulting delays in customer call-offs", the company said.
"We had a good first quarter," Chief Financial Officer Klaus Keysberg said. "But we're still not where we want to be which is why we're not letting up and continue to work at full speed on implementing our plan."
The group, which makes everything from car parts to submarines, continued to expect adjusted EBIT of 1.5 billion to 1.8 billion euros and free cash flow before M&A to break even.
Shares in the company were indicated to open 1.9 per cent higher in pre-market trade.
Adjusted EBIT at the group's steel division, which could be spun off at some point, increased sixfold to 124 million euros, as higher selling prices offset a strong rise in raw materials and energy costs.
The group's automotive technology unit struggled with an ongoing shortage of semiconductors, causing operating profit to fall by two thirds in the period.
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Published 10 February 2022, 08:52 IST