Advertisement
UK markets closed
  • FTSE 100

    8,433.76
    +52.41 (+0.63%)
     
  • FTSE 250

    20,645.38
    +114.08 (+0.56%)
     
  • AIM

    789.87
    +6.17 (+0.79%)
     
  • GBP/EUR

    1.1622
    +0.0011 (+0.09%)
     
  • GBP/USD

    1.2525
    +0.0001 (+0.01%)
     
  • Bitcoin GBP

    48,530.27
    -1,693.86 (-3.37%)
     
  • CMC Crypto 200

    1,257.33
    -100.67 (-7.41%)
     
  • S&P 500

    5,222.68
    +8.60 (+0.16%)
     
  • DOW

    39,512.84
    +125.08 (+0.32%)
     
  • CRUDE OIL

    78.20
    -1.06 (-1.34%)
     
  • GOLD FUTURES

    2,366.90
    +26.60 (+1.14%)
     
  • NIKKEI 225

    38,229.11
    +155.13 (+0.41%)
     
  • HANG SENG

    18,963.68
    +425.87 (+2.30%)
     
  • DAX

    18,772.85
    +86.25 (+0.46%)
     
  • CAC 40

    8,219.14
    +31.49 (+0.38%)
     

Factbox: Thyssenkrupp puts units up for review due to cash drain

A logo of Thyssenkrupp AG is pictured at the company's headquarters in Essen

(Reuters) - Struggling German conglomerate Thyssenkrupp, whose shares hit a fresh 16-year low on Monday, put three underperforming businesses under review last week, hoping this will ease pressure on the group's cash flow.

The new plans come in addition to a planned sale or listing of its elevators division, by far its most profitable business.

The three units put up for review -- Springs and Stabilizers, System Engineering and Heavy Plate -- account for 4%, or 1.7 billion euros ($1.9 billion), of group sales but a quarter of cash outflow this year, more than 250 million.

Their combined 9,300 staff make up 5.7% of Thyssenkrupp's total workforce. The company is now drawing up restructuring plans. If that should fail the businesses could be sold or shut down.

ADVERTISEMENT

Here are some basic facts on the units:

SPRINGS & STABILIZERS

- part of Thyssenkrupp's Components Technology business division

- described as "the biggest drag" on profits and cashflow by Thyssenkrupp Chief Executive Guido Kerkhoff

- makes chassis components for the car industry, a heavily commoditised market

- employs about 3,600 staff

- adjusted loss before interest and tax of 127 million euros in the 2017/18 fiscal year

- negative cash flow of 109 million euros in 2017/18

- has production sites in Mexico, Brazil, China, Hungary and Germany

- peers include Italy's Sogefi Group, Germany's Mubea and U.S.-based Federal-Mogul

SYSTEM ENGINEERING

- part of Thyssenkrupp's Industrial Solution business division

- subject to "inefficient cost basis" and "increasing customer reluctance", CEO Kerkhoff says

- makes assembly lines for the car, aerospace and battery industries

- employs about 4,900 staff in Europe, Asia and the Americas

- made adjusted earnings before interest and tax (EBIT) of 15 million euros in 2017/18 on sales of 1.1 billion (adj EBIT margin of 1.4%)

- cash flow of 16 million euros in 2017/18

- competitors include Siemens and Kuka

HEAVY PLATE

- part of Thyssenkrupp's Steel Europe business division

- makes solid steel plates for the construction, shipbuilding and pipeline industries

- hit by "import pressures" from cheaper rivals, Thyssenkrupp says

- employs about 800 staff in Duisburg, Germany

- made an adjusted loss before interest and tax of 28 million euros in 2017/18

- negative cash flow of 47 million euros in 2017/18

- competitors include Salzgitter and Dillinger Huette in Germany and Austria's Voestalpine

($1 = 0.8949 euros)

(Reporting by Christoph Steitz in Frankfurt and Tom Kaeckenhoff in Duesseldorf; Editing by Keith Weir)