Engineering

More documents

Recommendations

Info

2.3 Management report on on the Group Results of of operations of of the the business areas areas Stainless Global achieved two-digit- two-digitgrowth in order intake and sales. Stainless Global (discontinued operation) Stainless Global in figures 2009/2010 2010/2011 Change in % Order intake million € 5,121 6,045 18 Sales million € 5,901 6,739 14 EBIT million € (57) (785) – – EBIT margin % (1.0) (11.6) — Adjusted EBIT million € (57) 15 126 Adjusted EBIT margin % (1.0) 0.2 — Employees (Sept. 30) 11,235 11,490 2 The Stainless Global business area supplies premium-quality stainless steel flat products and highperformance materials such as nickel alloys and titanium. Orders and sales higher At Stainless Global, business was up from the prior year in the first months of 2010/2011. The value of new orders increased by 18% to €6.0 billion due to alloy prices; order volumes were 3% down from the prior year at 2.0 million tons. Whereas volumes decreased slightly in the stainless flat products business, demand for nickel alloys and titanium increased, which also noticeably increased their selling prices. 2.3 million tons of stainless flat products and 37,500 tons of high-performance materials were produced. It should be noted that the prices of high-performance materials are many times higher than those of stainless products. Overall shipments were 6% down from the prior year at 2.0 million tons. Market demand was noticeably weaker in the 2nd half of the year. Despite this, sales increased by 14% to around €6.7 billion due to higher alloy surcharges. Base prices were lower than a year earlier. Stainless Global order intake Stainless Global EBIT in million €, quarter on quarter rate of change in million €, quarter on quarter rate of change Q1 943 Q1 Q2 + 65 % 1,560 Q2 Q3 (16)% 1,317 Q3 Q4 (1)% 1,301 Q4 2009/2010 Q1 + 14 % 1,483 Q1 Q2 + 21 % 1,790 Q2 Q3 (24)% 1,360 Q3 Q4 + 4 % 1,412 Q4 2010/2011 2009/2010 2010/2011 – – ++ (94)% + 40 % + 743 % – – – – 82 (42) (101) 81 5 7 59 0 (851)
Management report on the Group 2.3 Management report on the Group Results of operations of the business areas The new stainless steel mill in in the the USA began operations. 82 | 83 Adjusted EBIT positive Adjusted EBIT improved from €(57) million to €15 million, adjusted EBIT margin from (1.0)% to 0.2%. A favorable market situation at the beginning of the reporting year and the optimization of the product mix led to positive effects, in particular from the nickel alloy business. In addition, we further reduced costs. The EBIT figure includes €98 million in startup costs for the new stainless steel mill in the USA. Impairment charges weigh on EBIT After goodwill impairment of €290 million and a further fair value adjustment of €510 million, EBIT of Stainless Global came to €(785) million, compared with €(57) million in the prior year. EBIT margin decreased from (1.0)% to (11.6)%. The write-down to fair value made necessary by the intention to sell takes into account in particular the valuation discounts applied to stainless steel producers due to the structural problems in the market. The discounts also reflect the current sovereign debt crisis and the high risk aversion of investors. In the current environment, the valuations placed on stainless steel companies are comparatively low and vary over a range. We determined the fair value on the basis of internal calculations and estimates of market participants, and our valuation lies in the middle of the range. Stainless steel mill in the USA At the US site in Calvert the productivity and product quality of the units in phase 1 of the cold rolling mill commissioned last fiscal year improved further. The newly installed phase 2 units in the hot-rolled annealing and pickling line, the second cold rolling mill and the finishing line are now going into operation. In addition, the third cold rolling mill and the remaining parts of the finishing line are currently being installed. Construction work on the 1 million ton per year capacity melt shop is proceeding on schedule; it is due to start operation in December 2012. Until then the location will continue to be supplied with hot band and slabs from the European mills. Nirosta forward strategy To strengthen the competitiveness of the European stainless steel operations, the locations within the Nirosta plant network are being optimized. The relocation of production from Düsseldorf-Benrath to Krefeld is to be completed by the beginning of 2016. The investment volume is €244 million. The implementation of the first phase of the project began at the start of 2011, mainly involving the construction of a new annealing and pickling line and cold rolling mill. Business with external customers The order intake and sales of the business area also include business with customers within the ThyssenKrupp Group. The following figures were generated with customers outside the Group; as a result of the separation of the stainless steel operations, the corresponding Group figures are reduced by these amounts: 2009/2010 2010/2011 Change in % Order intake million € 4,609 5,411 17 Sales million € 5,306 6,016 13
Page 1:
Annual Report 2010/2011 At the cent
Page 4 and 5:
Our mission statement We are Thysse
Page 6 and 7:
Our capabilities Material We combin
Page 8 and 9:
Making tomorrow possible Our engine
Page 10 and 11:
Letter to shareholders Dr.-Ing. Hei
Page 12 and 13:
Letter to shareholders To assist ou
Page 14 and 15:
Contents Our mission statement C2 F
Page 17 and 18:
To our shareholders To our sharehol
Page 19 and 20:
Solutions for many sectors In the f
Page 21 and 22:
To our shareholders 1.1 To our shar
Page 23 and 24:
To our shareholders Edwin Eichler a
Page 25 and 26:
To our shareholders Wilhelm Segerat
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36: To our shareholders 1.3 To our shar
Page 45 and 46: To our shareholders 1.4 1.4 To To o
Page 49 and 50: Management report on the Group Mana
Page 51 and 52: Lightening the load The challenge o
Page 53 and 54: Management report on the Group 2.1
Page 55 and 56: IPO: Sale of a company to investors
Page 85: Management report on the Group 2.3
Page 105 and 106: Management report on the Group 2.5/
Page 129 and 130: Consolidated fi nancial statements
Page 131 and 132: Using space better The challenge of
Page 133 and 134: 3.1 Consolidated financial statemen
Page 135 and 136: Consolidated financial statements 3
Page 137 and 138:
Consolidated financial statements 3
Page 139 and 140:
3.6 Consolidated financial statemen
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Consolidated financial statements A
Page 179 and 180:
Guarantees include contingent liabi
Page 181 and 182:
22 Financial instruments Consolidat
Page 183 and 184:
Interest rate swaps and cross curre
Page 185 and 186:
Page 187 and 188:
Consolidated financial statements T
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
million € For the fiscal year end
Page 195 and 196:
The reconciliations of sales, incom
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Fully consolidated group companies
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Equity-stated companies (*=Joint Ve
Page 225 and 226:
Other associated affiliates (*=Join
Page 227 and 228:
Auditors’ Auditor’ report Repor
Page 229 and 230:
Additional information How have Thy
Page 231 and 232:
Making things more effi ciently The
Page 233 and 234:
4.1 Additional information Multi-ye
Page 235 and 236:
4.2 Additional information Other di
Page 237 and 238:
4.3 Additional information Other di
Page 239 and 240:
4.5 Additional information Index 4.
Page 241 and 242:
4.6 Additional information List of
Page 243 and 244:
4.8 Additional information Contact
show all

Engineering

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

Delete template?

Save as template?