Thyssenkrupp on track with restructuring, sees higher margins

© Reuters. FILE PHOTO: Thyssenkrupp’s logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS/Michaela Rehle/File Photo

BERLIN (Reuters) -Thyssenkrupp said on Thursday it expects mid-term adjusted margins of 4-6% as its restructuring programme progresses, adding it is looking into options for its marine systems, cement plants and chemicals divisions.

The group is considering partnerships and consolidation or a stand-alone scenario for its marine systems division and will decide on the future of the cement plant construction and chemicals units in the medium term, it said.

Another target is to restore its ability to consistently pay a dividend, Thyssenkrupp (DE:) said in a statement on its capital markets day.

“We still have a great deal to do when it comes to improving our performance,” Chief Financial Officer Klaus Keysberg said.

The group, which reported a 2.3% adjusted EBIT (earnings before interest and taxes) margin in 2020/21, is in the middle of a structural overhaul and has made a string of disposals in recent months.

These included the sale of its mining technology business to Denmark’s FLSmidth in July and the disposal of its infrastructure and carbon components operation.

These transactions should bring in a high-triple-digit-million euro figure to bolster the company’s net financial position and pension liabilities, Thyssenkrupp said.

Adjusted medium-term EBIT margin targets by division included at least 10% for industrial components and 7-8% for automotive, where 80% of sales were being generated from components not used in combustion engines.

Thyssenkrupp added it would announce more details about the initial public offering (IPO) of its hydrogen division Uhde Chlorine Engineers planned early next year at a separate capital markets day on Jan. 13, 2022.

“We’re getting Thyssenkrupp back on track,” Chief Executive Martina Merz said.

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