×

ThyssenKrupp Boosts Sales, Profit Guidance

German steelmaker ThyssenKrupp on Tuesday raised sales and profit guidance for 2007 after reporting strong fourth quarter results.

For the year ending September, the company predicted sales of 48 million euros to 49 billion euros ($63.5 billion), up from previous guidance in December of 47 billion euros ($60.1 billion).

ThyssenKrupp said it was aiming for a pre-tax profit of more than 2.5 billion euros ($3.2 billion) after reaching 2.62 billion euros in its fiscal year 2006.

“After exceeding this figure significantly in 2005/2006 we are confident of doing the same in the current fiscal year.” ThyssenKrupp Chief Executive Ekkerhard Schulz said in a statement.

In the three months ending Dec. 31, sales of Germany’s largest steelmaker increased 13% from the prior quarter to 12.3 billion euros ($15.8 billion)

In a generally favorable economic environment, ThyssenKrupp's final first quarter results showed that earnings before taxes improved to 1.062 million euros ($1.35 billion) from 425 million euros ($ 550 million) a year ago.

ThyssenKrupp reported in mid-January preliminary quarterly results that showed pre-tax profit more than doubling to 1 billion euros, easily beating the average estimate of 836 million euros ($1.08 billion) from a Reuters poll of 16 analysts, Reuters reported.

But the company is experiencing problems at its elevator division, which has traditionally been a strong unit but isn’t delivering any profit growth right now, Hans-Peter Wodniok, partner at Fairesearch, told “Squawk Box Europe.”

ThyssenKrupp fiscal first-quarter orders were 13.3 billion euros ($17.2 billion), 15% more than in the corresponding prior-year quarter.

Earnings per share increased to 1.31 euros from 0.49 euro in the prior-year quarter.