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UPDATE 1-ThyssenKrupp loss balloons on Steel Americas writedown

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Published: Monday, 10 Dec 2012 | 3:40 PM ET

* FY net loss 4.7 bln eur vs poll avg 985 mln

* Thyssen writes down Steel Americas value by 3.6 bln eur

* Steel Americas FY adj EBIT loss about 1 bln eur

* Thyssen omits 2011/12 dividend

* Says to further cut costs to boost EBIT by 2 bln eur

FRANKFURT, Dec 10 (Reuters) - Germany's ThyssenKrupp AG posted a bigger than expected annual loss as it took a painful writedown on its steel mills in the United States and Brazil, which are up for sale.

The net loss for the 12 months through September jumped to 4.7 billion euros ($6.1 billion) from 1.3 billion a year earlier as it wrote down the value of the Steel Americas mills by 3.6 billion euros, Germany's top steelmaker said late on Monday.

The loss was almost five times as big as an average poll estimate of a 985 million euros.

Thyssen said it would pay no dividend for the 2011/12 fiscal year and announced plans to further cut costs to boost operating profit by 2 billion euros in the next three years.

The losses at Steel Americas as well as corruption allegations and cartel probes prompted Chief Executive Heinrich Hiesinger to axe half his management board last week and call for a change in the "leadership system and leadership culture".

"The Steel Americas project and the various compliance violations have not just caused immense financial damage. We have thereby also lost trust and credibility," he said in a statement.

"With the changes on the Executive Board, the Supervisory Board has sent out a clear signal for a fresh start."

Thyssen said the sale of Steel Americas, which posted a full-year adjusted operating loss of about 1 billion euros, as expected, was on track and should be completed in its current financial year.

Thyssen also said it expected its group revenues - excluding Steel Americas and the recently sold stainless steel business Inoxum - to remain flat this fiscal year at about 40 billion euros. Adjusted earnings before interest and tax (EBIT) should slide to about 1 billion euros from 1.4 billion.

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*FY net loss 4.7 bln eur vs poll avg 985 mln. FRANKFURT, Dec 10- Germany's ThyssenKrupp AG posted a bigger than expected annual loss as it took a painful writedown on its steel mills in the United States and Brazil, which are up for sale.
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