Engineering

Management report on the Group
2.2 Management report on on the the Group Group Consolidated results results of operations of operations
Consolidated results of
operations
ThyssenKrupp continued its upward trend in operating business in
2010/2011. Orders and sales grew at double-digit rates. The
market situation and above all our measures to improve our
earnings structure had a positive effect – adjusted EBIT increased
by €521 million to €1,762 million. However, high impairment
charges resulted in negative EBIT.
Summarized assessment by the Executive Board of
business performance and target achievement
56 57 | 57
Good activity levels in sectors and regions important to us together with our internal efficiency and
improvement programs were the basis for our continued operating performance in the reporting year.
Orders, sales and adjusted EBIT grew at double-digit rates. Net financial debt fell to €3,578 million,
compared with €3,780 million at the end of the prior year. At the same time we introduced an ambitious
strategic development plan to improve the Group’s competitiveness and earning power in the future. Subject
to the uncertainties regarding the economic outlook, we will continue to work on this in 2011/2012.
The growth in adjusted EBIT underlines the improved earnings structure and increased earning power of our
Group. This was offset by high impairment charges, in particular for the new steel mill in Brazil. The
impairment charges totaled €2.9 billion, of which €2.1 billion at Steel Americas and €800 million at
Stainless Global. As a result, reported EBIT was negative.
General economic conditions
Economic momentum slowed noticeably over the course of 2011. Global GDP growth of only 3.4% is
expected in 2011, compared with 4.6% in 2010. The decline is attributable above all to the slowdown in the
industrialized countries, while most emerging countries continue to show relatively solid expansion rates.
Growth noticeably weaker in Europe and the USA
In the euro zone GDP growth is expected to average 1.6% in 2011. While the pace of growth remained high
at the beginning of the year as a result of strong business spending, it slowed sharply as the year
progressed. The German economy showed appreciably stronger growth of 2.9% in 2011, mainly reflecting
the good order situation in the industrial sector. However, consumer and business spending will have been
impacted by the uncertainties on the financial markets in the latter part of the year.