BERLIN, May 14 (Xinhua) -- Operational profits (EBIT) of Thyssenkrupp declined by 66 percent to 145 million euros (162.6 million U.S. dollars) in the second quarter (Q2) of fiscal year 2019, the German industrial giant announced on Tuesday.
A looming antitrust fine in the steel business had an additional negative impact on net profits.Thyssenkrupp recorded a net loss of 99 million euros in Q2.
According to the company, the decline in operational profits was attributable to higher material costs in Thyssenkrupp's elevator segment as well as lower earnings in the company's material and commodity segment.
Thyssenkrupp's steel business was hit by the historic low tide of the river Rhine as well as lower demand from the automotive industry. A new collective agreement would have had a negative impact on earnings, the German industrial company stated.
Turnover of the German industrial giant increased by 2 percent to a total of around 20.4 billion euros. According to Thyssenkrupp, the main growth driver for the company's turnover had been its elevator business in the United States as well as in Europe.
Plans for an initial public offering (IPO) of Thyssenkrupp's elevator business were announced earlier this week. As part of the company restructuring, Thyssenkrupp will cut around 6,000 jobs over the next three years, of which two-thirds would be in Germany.
For 2019, Thyssenkrupp is expecting its net profits to be "negative" without mentioning precise numbers. According to Thyssenkrupp, this forecast is including expenses for restructuring as well as expenses for the preparation of the IPO of the elevator business. (1 euro = 1.12 U.S. dollars)
