2005-2006 Financial Statements and Management Report

More documents

Recommendations

Info

68 VEHICLE PRODUCTION REMAINS A GLOBAL GROWTH SECTOR WITH NEW CAPACITIES BEING INSTALLED. Predominantly positive trend on key customer markets We expect a predominantly favorable trend on the customer markets of importance to ThyssenKrupp. The prospects for the world steel market in particular remain generally positive. World demand for rolled steel will grow by around 5% in 2007, driven mainly by the emerging countries of Asia and Latin America and the cis states. In Europe and the nafta region demand is expected to remain steady or fall slightly due to the somewhat subdued economic outlook and the expected reduction of stocks. However, steel consumption is expected to increase further. Output will rise primarily in the emerging countries – especially China, India and Brazil – as major new capacities go into operation. The situation on the raw material and energy markets will remain tight on the whole, keeping steel production costs at a high level or pushing them even higher. We expect demand for stainless steel and the high-performance materials nickel alloys and titanium to continue to rise in 2007, both in Europe and North America and also in Asia, in particular China. While in China most producers have been operating below capacity due to strong capacity growth in recent years, producers in Europe and the usa are barely able to keep up with demand. We expect the automotive market to remain a growth market overall. For 2007 we expect worldwide production to grow by 2% to 70.5 million vehicles. However, the new production capacities are increasingly being installed in the emerging Asian countries and in Central and Eastern Europe. These countries could once again significantly expand their vehicle production in 2007. In the nafta region, Western Europe and Japan, volumes will decrease slightly. As a result of weaker domestic demand, German auto production is expected to fall to 5.7 million cars and trucks. Due to the slightly reduced pace of global expansion, growth in the mechanical engineering sector in 2007 is not expected to be as strong as the year before. There are signs of cooling in the usa and Western Europe in particular. In China, continuing high investment will continue to ensure strong growth. The international construction market will remain characterized by large regional differences in 2007. In the euro zone growth will be weaker, and in Germany a slight rise in construction output is expected. However, a significant downturn in construction activity is likely in the usa. Growth will remain focused on the countries of Eastern Europe as well as India and China. OPPORTUNITIES THROUGH INNOVATION AND INTERNATIONALIZATION Under a systematic forward strategy, ThyssenKrupp sees significant growth opportunities for the coming years. We aim to further increase the innovativeness and competitiveness of our products and services. Innovative processes and products open up opportunities to secure and build on our top positions on numerous markets. This applies not only to our range of materials but also to our complete system solutions, for example in plant technology and marine systems. We also see good prospects in the industrial services business. Its unique profile with innovative service offerings can make an even greater contribution to the Company’s success in the future.
FINANCIAL STATEMENTS AND MANAGEMENT REPORT Subsequent events, opportunities and outlook In the area of opportunity management, further internationalizing the activities of all segments is a key priority. Above all, we intend to step up our involvement in the up-and-coming countries of Asia, Latin America and Eastern Europe and participate in their growth. To this end we are building our own local production plants. However, we also see diverse opportunities for strategic acquisitions. In the Steel segment, the new steel mill in the Brazilian state of Rio de Janeiro will open up new opportunities. The low-cost, high-quality slabs supplied from Brazil will allow us to exploit growth opportunities in our core market of Europe and in the nafta region. The planned strengthening of our presence in North America with the establishment of our own rolling capacities for both carbon and stainless steel flat products will enhance our credentials on this key market as a flexible materials manufacturer with a local presence capable of responding quickly to the requirements of customers. Details of our corporate strategy aimed at exploiting our future opportunities are provided on pages 49-52. EARNINGS SITUATION EXPECTED TO REMAIN POSITIVE If the economic forecasts prove accurate, we anticipate a continued positive performance in 2006/2007 and 2007/2008. Sales: We currently expect sales in 2006/2007 to be in the region of €47 billion. Steel is aiming for an increase in sales of flat-rolled carbon steel, with prices rising slightly for structural reasons. Stainless forecasts moderate sales growth mainly as a result of volume and structural improvements in stainless steel flat products and higher base prices. Technologies anticipates an increase in sales for the segment’s previous activities, with a strong order backlog in the project business and order intake expected to be high. Excluding the disposals (mainly the North American body and chassis business, ThyssenKrupp Plastics, ThyssenKrupp Stahl Company), sales at the Automotive activities are expected to be unchanged from the prior year. Elevator once again expects a significant increase in sales in the coming fiscal year, secured by a high level of orders in hand. All regions are expected to contribute to this improvement. Services anticipates slightly lower sales due to the expected decline in prices. Improvements are forecast in the service activities and in the Eastern European market. THE NEW STEEL MILL IN BRAZIL WILL OPEN UP NEW GROWTH OPPORTUNITIES. 69
Page 1:
2005 - 2006 Financial Statements an
Page 4 and 5:
02 BUSINESS AREAS AND ORGANIZATIONA
Page 6 and 7:
04 OVERVIEW OF THE COURSE OF BUSINE
Page 8 and 9:
06 NICKEL ALLOYS AND TITANIUM MILL
Page 10 and 11:
08 THYSSENKRUPP ACHIEVED A SIGNIFIC
Page 12 and 13:
10 €489 MILLION OF UNAPPROPRIATED
Page 14 and 15:
12 INVESTMENTS IN GROWTH AREAS STRE
Page 16 and 17:
14 FUEL PRICE INCREASES PUSHED UP T
Page 18 and 19:
16 WE HAVE DEVELOPED A PLANT FOR CO
Page 20 and 21: 18 STEEL ACHIEVED A PROFIT OF €1.
Page 22 and 23: 20 A STRONG MARKET REVIVAL AND INNO
Page 24 and 25: 22 IN MEXICO, HIGH-VALUE PRODUCTS A
Page 26 and 27: 24 AUTOMOTIVE CONTINUED ITS PORTFOL
Page 28 and 29: 26 TECHNOLOGIES ENJOYS SUCCESS ON T
Page 30 and 31: 28 THE LARGEST LATHE IN NORTHERN EU
Page 32 and 33: 30 ACQUISITIONS IN THE USA, ASIA AN
Page 34 and 35: 32 SERVICES ALMOST DOUBLED ITS PROF
Page 36 and 37: 34 CORPORATE INCLUDES VARIOUS SERVI
Page 38 and 39: 36 OUR CONTROL SYSTEM FOR LASER WEL
Page 40 and 41: 38 TO DATE, ALMOST 300 PROJECTS HAV
Page 42 and 43: 40 OCCUPATIONAL SAFETY HAS IMPROVED
Page 44 and 45: 42 OUR EXECUTIVE POLICY IS BASED ON
Page 46 and 47: 44 FINANCIAL POSITION The Group’s
Page 48 and 49: 46 INTANGIBLE ASSETS INCLUDE GOODWI
Page 50 and 51: 48 THE THYSSENKRUPP BRAND WAS FURTH
Page 52 and 53: 50 WE HAVE SEVERAL STRATEGIC OPTION
Page 54 and 55: 52 OUR INTEGRATED CONTROL CONCEPT S
Page 56 and 57: 54 GROWTH, EFFICIENCY AND OPTIMIZAT
Page 58 and 59: 56 OVER 60% OF BEST PROJECTS TAKE P
Page 60 and 61: 58 COMPENSATION REPORT THE BONUS AM
Page 62 and 63: 60 THE LTMI EXPIRED WITH PAYMENT OF
Page 64 and 65: 62 THE SECURITY OF THE INFORMATION
Page 66 and 67: 64 THE AREAS OF ACTIVITY OF THE SEG
Page 68 and 69: 66 THE RISKS TO THE THYSSENKRUPP GR
Page 72 and 73: 70 THE NUMBER OF EMPLOYEES WILL RIS
Page 74 and 75: 72 BALANCE SHEET Assets million €
Page 76 and 77: 74 NOTES GENERAL ThyssenKrupp ag is
Page 78 and 79: 76 FIXED ASSETS SCHEDULE in million
Page 80 and 81: 78 Disclosures on the volume of tre
Page 82 and 83: 80 million € Bonds Liabilities to
Page 84 and 85: 82 Foreign currency derivatives The
Page 86 and 87: 84 22 TAXES ON INCOME Taxes on inco
Page 88 and 89: 86 AUDITORS’ REPORT We have audit
Page 90 and 91: 88 SUPERVISORY BOARD PROF. DR. H.C.
Page 92 and 93: 90 LIST OF EQUITY INTERESTS Compani
Page 94 and 95: 92 Companies (As of September 30, 2
Page 102: 100 CONTACT/2007/2008 DATES For mor
show all

2005-2006 Financial Statements and Management Report

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?