thyssenkrupp chairman raises alarm bell with third-quarter loss in Industrial Solutions

Guido Kerkhoff, Chairman of the Executive Board of thyssenkrupp in dark suit with red tie, in article about third-quarter loss in Industrial Services division.Guido Kerkhoff, Chairman of the Executive Board of thyssenkrupp AG (photo courtesy of thyssenkrupp)

The EU-based international conglomerate thyssenkrupp, which is planning a large facility near SunTrust Park in Cobb County, reported a third-quarter reduction in earnings Thursday, with revenue driven down by higher than expected costs and lower sales in its Industrial Solutions group. The company reported a third-quarter loss in that group of over 200 million euros ($231 million). “The main negative factors were higher expected total costs, particularly for a marine project in Turkey, a cement plant in Saudi Arabia and a biofuel power plant in Australia,” the company wrote in a press release.

“The results for the third quarter of 2017/2018, combined with a medium-term outlook for the business segments, will be published as planned on August 9 [today],” according to the company.

thyssenkrupp chairman comments on results

“We see a mixed picture. The bottom line is, that we are not satisfied with the current results”, said Guido Kerkhoff, Chairman of the Executive Board of thyssenkrupp AG. “There’s no point in sugar-coating it. Notably, the cash flow is unsatisfactory, and that is not a situation which can be sustained long-term. We have to improve significantly across all our businesses. And that is what we are now working hard to deliver.”

Kerkhoff said in another press release, “It is important to me to call it what it is. The results of our analysis at Industrial Solutions are anything but satisfying. The structure of plant construction must be adjusted to the changed market conditions in order to achieve a turnaround and finally become competitive again. We must act swiftly here.”

Structure of the company

Thyssenkrupp’s operations are divided into five business units: Components Technology, Elevator Technology, Industrial Solutions, Materials Services, and Steel Europe.

The planned Cobb County facility on Circle 75 Parkway will be the headquarters of Elevator Americas, part of the Elevator Technology division of thyssenkrupp. It will include offices and an elevator high-rise test tower.