ThyssenKrupp in fiscal year 2005/2006
Best performance since the merger with EBT of EUR2,623 million
Dividend of EUR1 recommended
Düsseldorf, Germany – For ThyssenKrupp 2005/2006 was an outstanding fiscal year – the most successful since the merger in 1999:
- EBT, or earnings from continuing operations before taxes, reached EUR2,623 million (fiscal year 2004/2005: EUR1,677 million). This represents an improvement of 56.4 percent;
- Demand for the Group’s products and services continued to increase strongly. Order intake from continuing operations reached EUR50.8 billion (fiscal year 2004/2005: EUR43.5 billion), and was thus up by 16.7 percent;
- At EUR47.1 billion, sales were 9.8 percent higher than the year before (EUR42.9 billion);
- Earnings per share increased from EUR2.08 to EUR3.24, a rise of 55.8 percent;
- ThyssenKrupp’s stock gained 53 percent in fiscal year 2005/2006, making it the second-best performing stock in the DAX. The DAX improved by 19 percent. In the past five fiscal years the share price has increased from EUR11.20 to EUR26.57 (September 30 in each case). This represents an improvement of almost 140 percent. In the meantime the share price has climbed further. On November 28 it stood at EUR 28,49;
- In response to the outstanding earnings, in its meeting on November 30, 2006 the Supervisory Board endorsed the proposal of the Executive Board to recommend to the Annual General Meeting an increase in the dividend from EUR0.70 to EUR1.00 per share. Excluding the special dividend of EUR0.10 per share in fiscal year 2004/2005, the dividend has thus increased by 43 percent.
Other key indicators in fiscal year 2005/2006:
- ROCE increased from 14.4 percent to 17.9 percent;
- TKVA improved from EUR997 million to EUR1,510 million;
- Net financial receivables of EUR747 million were reported at September 30, 2006, compared with net financial liabilities of EUR177 million a year earlier;
- The number of employees increased to 187,586 (September 30, 2005: 185,932).
These figures confirm ThyssenKrupp’s strategy. Dr. Ekkehard Schulz, Chairman of the Executive Board of ThyssenKrupp AG: "In the past the focus was on consolidation. Now we have moved up a gear and are on a clear, profitable growth track. Our sustainable target for pre-tax earnings over the economic cycles is EUR2.5 billion. Having achieved this target in 2005/2006, we are confident we can exceed the performance in the current fiscal year. We aim to achieve earnings of a similar magnitude in 2007/2008."
With sales of 47.1 billion euros and 188,000 employees in over 70 countries, ThyssenKrupp is one of the world’s major technology groups and occupies excellent positions on the international markets. The three main business areas of steel, capital goods and services, organized in five segments – Steel, Stainless, Technologies, Elevator and Services – mark out the Group’s areas of competence.