|Bid||11.60 x 142800|
|Ask||0.00 x 10700|
|Day's range||11.59 - 11.61|
|52-week range||9.25 - 16.57|
|Beta (3Y monthly)||1.73|
|PE ratio (TTM)||N/A|
|Earnings date||13 Feb 2020|
|Forward dividend & yield||0.15 (1.32%)|
|1y target est||22.24|
Much-needed funds for Thyssenkrupp's steel division, which could be turned into the conglomerate's profit engine, have not yet been approved by management, a leading labour representative said. "The management of Thyssenkrupp needs to earn that money first," Tekin Nasikkol, who heads the works council of Thyssenkrupp Steel Europe, said on Thursday, adding some members of the board were saying the unit needs too much money. Under plans revealed a day earlier, Thyssenkrupp's steel unit could become the company's new core profit driver following an expected sale of its elevator division.
Thyssenkrupp, whose attempt to merge its steel operations with a rival was thwarted by regulators earlier this year, now plans to transform the business into its biggest profit engine, according to an internal memo seen by Reuters. The German group told staff it aimed to boost earnings before interest and tax (EBIT) at Steel Europe by an average of up to 600 million euros ($661 million) over the coming years, helped by job cuts and selling more to the autos industry. On Wednesday, thousands of workers at Thyssenkrupp's elevator division staged protests at the group's headquarters in Essen, asking management for job protection.
DUISBURG/FRANKFURT (Reuters) - Ailing conglomerate Thyssenkrupp has worked out a new strategy for the group's steel business, a leading labor representative said on Tuesday, adding the roadmap included significant investments but also restructuring steps. The strategy paper was presented to the supervisory board of Thyssenkrupp Steel Europe on Tuesday, following labor protests at the division's headquarters in Duisburg, in the heart of the Ruhr area, Germany's industrial heartland. The unit's future hangs in the balance after a deal to combine it with the European division of Tata Steel collapsed earlier this year, forcing management to announce the reduction of 2,000 out of the unit's total 27,000 jobs.
Thyssenkrupp needs to pour 1.5 billion euros ($1.7 billion) into its core steel business after years of underinvestment has left at a competitive disadvantage, the head of its works council. The labour chief's comments come days after Union Investment, a top-10 investor in the ailing German conglomerate, raised pressure on management to present a turnaround plan for the steel unit or drop the business. "It is about the existence of steel (at ThyssenKrupp)," Tekin Nasikkol said ahead of a rally planned for Tuesday at the steel unit's Duisburg headquarters.
Tata Steel Europe said on Wednesday it had begun talks with its workers on a "transformation programme" that involves up to 3,000 job cuts, prompting an angry response from union leaders who said the plan needed to be revised. Indian-owned Tata Steel, which announced restructuring plans on Nov. 18 in a bid to boost profitability, added the further detail on Wednesday that up to 1,600 cuts were expected in the Netherlands, 1,000 in Britain and 350 elsewhere.
Tata Steel Europe said in a statement on Wednesday that it was in talks with a European Works Council on job cuts being made as part of restructuring. The company said http://bit.ly/2QWTeNv that of the 3,000 job cuts across its European business announced on Nov. 18, up to 1,600 are expected in the Netherlands, 1,000 in the United Kingdom and 350 in other parts of the world. Indian-owned Tata Steel had announced the cuts as part of wider efforts to boost profitability in Europe, saying around half of the losses would be in the Netherlands and around two-thirds would be office-based roles.
Thyssenkrupp steel workers have demanded major investments and criticised management for delaying a presentation about its plans for the steel business. The steel business, whose roots go back more than 200 years, has suffered a sharp fall in profits and Thyssenkrupp is planning about 2,000 job cuts. "We demand a clear commitment from Thyssenkrupp with regard to steel," Detlef Wetzel, vice supervisory board chairman of Thyssenkrupp Steel Europe, told Reuters on Monday.
(Bloomberg Opinion) -- Europe’s steel industry is in crisis again and there’s no shortage of reasons for all the financial losses and job cuts. Stagnating demand, surplus production capacity, higher iron ore prices and a surge in imports caused by trade conflicts are just some of them.But when Tata Steel Ltd. announced 3,000 job losses at its European arm this week, the company also pointed to a “significant increase” in the cost of carbon emission permits.Blaming the CO2 price has become a common yet questionable refrain in the industry. ArcelorMittal offered a similar excuse when it announced big production cuts in May. British Steel Ltd.’s collapse that same month was also linked to its obligation to purchase expensive carbon credits.The reality looks rather different. Steel is responsible for about 7% of global emissions but even today the sector is mostly shielded from having to buy carbon pollution permits in Europe. Steelmakers are in a tight spot but they shouldn’t grumble about a policy that’s been lucrative for them in the past and whose purpose is to help them clean up their act.To recap, the EU’s emission trading system was created more than a decade ago to help mitigate the climate crisis by making polluters pay. Utilities, industrial plants and airlines are required to obtain permits to match how much they pollute. The reason for the industry’s complaints now is that the cost of those allowances has more than trebled in the past two years after the European Union tweaked the system.That’s theoretically difficult for steelmakers because they emit almost two metric tons of CO2 for every ton of steel produced. A roughly 50-euro ($55) CO2 price for each marginal ton of output is significant because the spread between steel prices and the cost of the raw materials needed to make it has fallen to about 250 euros a metric ton. “Considering that steel makers are barely profitable the pressure from CO2 prices is substantial,” says Benjamin Jones of CRU, a metals and mining consultancy. Yet all the steelmakers’ complaints ignore an important financial safety net for the industry. Because of the perceived threat of so-called “carbon leakage” (where companies decamp to places with cheaper pollution costs) the least polluting steelmakers still receive free allowances that cover 100% of their emissions.(1)“Given how generous free allocation has been, steel should be among the industries hurting the least from the carbon price,” says Jahn Olsen, a carbon analyst at BloombergNEF.Furthermore, the production cuts after the 2008-2009 recession left steelmakers with large surpluses of emission permits which they were free to keep or sell at a profit. While the extent of the industry’s windfall profit from this is disputed, one study found it could be 8 billion euros ($8.8 billion). Some steelmakers are still benefiting today.Tata Steel’s European arm generated 211 million pounds ($273 million) of income from selling surplus allowances in the fiscal year to March, its annual accounts show. It’s pretty bold of the steelmaker to call out the rising cost of pollution permits when it’s just booked a big profit from them. There are echoes here of what happened to British Steel,(2) which sold emission permits only to discover later that it needed them.(3) “The European steel sector is in a tough spot but to blame carbon pricing is disingenuous,” says Sam Van den plas, policy director at Carbon Market Watch. For now the largest and most technically advanced steelmakers probably aren’t having to fork out much for allowances.This will change gradually after 2021 when the so-called fourth phase of emissions trading begins. But the EU still expects to hand out 6.3 billion free permits to polluters during that period, worth more than 150 billion euros at current prices. For now ThyssenKrupp says the impact from carbon pricing is “marginal” and will probably remain so next year. It warns though of “considerable risks” in the post-2021 period.Tata says it expects to spend more than last year’s 211 million-pound gain on permits in coming years, but didn’t provide more detail.ArcelorMittal says it might have to pay out 5 billion euros between 2021 and 2030 at the current CO2 price. On an annual basis that’s about one-eighth of its analyst-estimated operating profit for 2021. This sounds a lot but it assumes the company makes no improvements in cutting pollution.Emission cuts by companies bound by the EU trading system have been fairly impressive but recent progress has come mostly from the power sector. That makes the bloc’s task of reaching climate neutrality by 2050 — something ThyssenKrupp and others have signed up to — more difficult. Excluding power plants, the largest individual sources of carbon pollution in Europe are all steelworks. In fairness, there’s an absence of carbon-cutting technologies in sectors like steel and cement. Techniques such as replacing coal with hydrogen in steel production show promise but most are still being trialed. Making them viable commercially would require a higher carbon price and massive investments, including on huge new sources of renewable electricity. Yet the free carbon allowances for steel companies probably didn’t motivate them enough to find more sustainable production methods. In her resolve to redouble the EU’s pollution-cutting efforts, European Commission President Ursula Von der Leyen has floated the idea of a carbon border tax on imports into the bloc to make sure domestic producers aren’t unfairly penalized.The feasibility of such a tax is unproven: Measuring the carbon content of manufactured good is tricky and the levy would have to reflect the fluctuating price of allowances. Even if it complies with World Trade Organization rules, a carbon tax might inflame trade tensions with the U.S.Naturally the steelmakers think a border tax is a great idea as it would expose them to less competition by deflecting “dirty” imports. Astonishingly, they’re lobbying to keep their free pollution allowances even if non-EU steelmakers are forced to pay the bloc’s carbon price. The local industry argues that its non-EU exports would become uncompetitive if it had to pay the full cost of permits while investing in emission-cutting innovations. Its lobbying sounds dangerously like an industry trying to have its cake and eat it.(1) The data show ArcelorMittal and Tata Steel receive allowances that exceedtheir emissions. However some of these must be handed to the power sector to account for the waste gases they process.(2) A company formed of assets sold by Tata Steel to Greybull Capital in 2016(3) Tata Steel sold the permits ahead of a planned merger with ThyssenKrupp's steel business which was then blocked on anti-trust grounds.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. European shares managed to end the session a bit off initial lows as traders continued to play ping pong on trade headlines. In particular it was a Wsj report saying China has invited top U.S. trade negotiators for a new round of talks in Beijing that helped avoid a deeper sell-off.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. EURONEXT: WHOSE FAT FINGER WAS THAT? Just a few minutes after the open, Euronext shares suddenly lost more than 8% and hit for a brief moment the bottom of the STOXX 600, which was already a crowded place with big losers such Royal Mail, Thyssenkrupp and Fiat Chrysler for instance.
European stocks dropped for a fourth straight day on Thursday as mixed headlines about U.S.-China trade talks muted risk appetite, while German conglomerate Thyssenkrupp suffered its worst day in nineteen years after scrapping its dividend. Thyssenkrupp tumbled more than 13% as it warned of deeper losses and asked investors for yet more patience over its turnaround. Fears that agreement of an initial trade deal between United States and China could slide into next year, as well as political tensions between the two sides due to the U.S. passing legislation backing protestors in Hong Kong, weighed on investor sentiment.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Thyssenkrupp AG plunged the most in a year after moving to suspend dividend payments as it warned losses would deepen, underscoring the challenges facing executives trying to chart a path out of crisis.The German company will ask shareholders to approve suspending payments for the past fiscal year at a meeting in January and warned the financial situation may worsen as it restructures. Losses widened and debt surged in the year through September as a deteriorating economic environment compounded faltering performance at several units of the steel-to-submarines conglomerate.The shares fell as much as 12%, and were down 10% by 9:51 a.m. in Frankfurt, taking this year’s decline to 19%.“The performance of many of our businesses is not satisfying,” Chief Executive Officer Martina Merz said in a statement on Thursday, adding the company would press ahead with a sale or listing of its crown-jewel elevator unit and restructuring measures at other divisions.Once a paragon of German engineering might, Thyssenkrupp is fighting for survival in the teeth of a factory sector slowdown. The company has said it would pursue a sale or listing of its elevator division in order to stabilize its worsening balance sheet. The unit, which is riding a global megatrend for urbanization, was again a glimmer of light in an earnings statement that showed the firm’s cash and debt position worsening.Ingo Schachel, an analyst at Commerzbank AG, said the bank was “somewhat disappointed” by the outlook for 2020 as it implied “a notable increase of net debt and cash burn” in the first quarter.“The strategy update appears to pull the right levers, but for today, market focus will probably rather be on the short-term outlook for 2020 as many of the strategic steps were already anticipated,” Schachel said by email.READ: Steel Royalty No More, Thyssenkrupp Sells Itself Off to SurviveThyssenkrupp said its earnings performance for financial year 2019-20 was uncertain, but expected adjusted earnings before interest and taxes to be around this year’s level of 802 million euros ($890 million). The company also forecasts net losses will be significantly worse in this fiscal year due to restructuring costs.“The expenses for the intensification of restructuring will result in a significantly higher net loss for the year than in the previous year,” Thyssenkrupp said in the statement.Thyssenkrupp said it expected binding offers for the elevator unit in the next year. The company also said it has already received indicative offers from strategic and financial investors, and preparations for a possible initial public offering would be completed by the end of this year.The company said it would slash 640 jobs at its systems-engineering unit. It also hinted it would speed up plans to sell other businesses, and said it has earmarked a “mid triple-digit million” euro amount for pending restructuring measures in the current fiscal year.Thyssenkrupp reiterated it was prioritizing addressing challenges in its steel unit, with the aim of giving it “a long-term perspective,” and said an advisory group would present a plan to executives next month.(Updates shares in third paragraph)\--With assistance from Joe Richter, Richard Weiss and Nicholas Larkin.To contact the reporter on this story: William Wilkes in Frankfurt at email@example.comTo contact the editors responsible for this story: Reed Landberg at firstname.lastname@example.org, Nicholas Larkin, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Thyssenkrupp is down over 10% after scrapping its dividend in the face of widening losses and Fiat Chrysler takes a 3.3% hit on General Motors' racketeering lawsuit. Royal Mail is the top loser on the STOXX 600 with a whooping 16% fall as its turnaround plan gets behind schedule.
European shares slid on Thursday after U.S. legislation on Hong Kong fueled more worries that a "phase one" trade deal between Washington and Beijing would not be formed anytime soon. Most European subsectors were deep in the red, with miners , technology and oil & gas companies - which are most exposed to global trade tensions - dropping about 1% each. In a move sure to anger China, U.S President Donald Trump is expected to sign two bills passed by Congress intended to support protesters in Hong Kong.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. The Energy sector is also expected to be under pressure with oil prices retreating due to the trade tensions. While we wait to see if there will be any surprise in the list of companies Labour will seek to nationalise should it win the Dec 12 election, Royal Mail and Severn Trent, already targeted, both published trading updates.
Thyssenkrupp on Wednesday said it planned to cut 640 jobs at its struggling System Engineering unit, which it put under review earlier this year. System Engineering, which makes assembly lines for the car, aerospace and battery industries, was one of three underperforming divisions the group has said needed major restructuring. "Overall we believe in the future of our automotive engineering business," Karsten Kroos, head of Thyssenkrupp's automotive supply business, said.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Finland's Kone has proposed paying a multi-billion euro break-up fee to Thyssenkrupp in an effort to improve its chances in an auction for the German conglomerate's elevator business, three people familiar with the matter said. Kone, in a partnership with private equity firm CVC, is among suitors for Elevator Technology (ET), which Thyssenkrupp has put up for sale in a bid to pay down pensions and debt, and invest in restructuring its other struggling businesses. Under the plans, Kone would pay the break-up free - which one source put at 3 billion euros ($3.3 billion) - upfront, making it easier for Thyssenkrupp to accept a deal with the firm, which could face an antitrust review lasting more than a year.
FRANKFURT/DUESSELDORF, Germany, Nov 19 (Reuters) - Finland's Kone has proposed paying a multi-billion euro break-up fee to Thyssenkrupp in an effort to improve its chances in an auction for the German conglomerate's elevator business, three people familiar with the matter said. Kone, in a partnership with private equity firm CVC , is among suitors for Elevator Technology (ET), which Thyssenkrupp has put up for sale in a bid to pay down pensions and debt, and invest in restructuring its other struggling businesses. Under the plans, Kone would pay the break-up free - which one source put at 3 billion euros ($3.3 billion) - upfront, making it easier for Thyssenkrupp to accept a deal with the firm, which could face an antitrust review lasting more than a year.
Unions of Tata Steel workers on Tuesday said they would hold the Indian-owned company to its promise that it would not lay off workers until the end of 2021. "We secured a jobs guarantee until 2021 and we will be robustly defending that agreement", Roy Rickhuss, General Secretary of the steelworkers’ trade union said. Tata Steel on Monday said it planned to cut 3,000 jobs at its European operations, as the sector wrestles with excess supply, weak demand and high costs.
AMSTERDAM/LONDON, Nov 18 (Reuters) - Steelworkers in Britain and the Netherlands said on Tuesday they would fight Tata Steel's plans to cut up to 3,000 jobs across its European operations, as the sector wrestles with excess supply, weak demand and high costs. Indian-owned Tata announced the cuts late on Monday as part of wider efforts to boost profitability in Europe, saying around half of the losses would be in the Netherlands and around two-thirds would be office-based roles.
Tata Steel plans to cut jobs across its European operations as it wrestles with excess supply and high costs, the company said on Monday. Following a weekend interview in the Financial Times with the group's European chief executive, Henrik Adam, Tata confirmed it was planning to announce job cuts across the European business, which employs around 20,000 people. Indian-owned Tata Steel, which launched a transformation programme in June to strengthen its European business, has operations including steelmaking in the Netherlands and Wales and downstream operations across Europe.