Thyssenkrupp AG reported a decrease in its fiscal first-quarter earnings on Tuesday as prices normalized at its materials services business and its multi tracks segment felt the loss of portfolio divestments.
The German industrial company TKA, +0.97% reported adjusted earnings before interest and taxes for the three months through the end of December of 254 million euros ($ 272.5 million), compared with EUR378 million in the first quarter of fiscal 2022, on sales that slipped by EUR5 million to EUR9.02 billion.
Analysts had anticipated adjusted EBIT of EUR175 million and sales of EUR9.06 billion, according to consensus expectations provided by the company.
The Essen-based company reported EUR75 million in net profit compared with EUR106 million a year earlier.
Its result reflected the anticipated normalization of prices, which was especially evident at materials services, as well as declines in order intake, sales and adjusted EBIT at multi tracks, Thyssenkrupp said.
Multi tracks order intake and sales declined by 64% and 49%, respectively, following divestments of the stainless steel and mining businesses from the division at the end of January and August, Thyssenkrupp said.
Thyssenkrupp’s historic steel Europe segment benefited from high revenue and long-term contracts and was only slightly hit by declining spot market prices, while automotive technology had strong customer demand but contraints on the supply of semiconductors, it said.
The company’s EUR365 million free cash outflow before mergers and acquisitions improved compared with negative EUR858 million reported in the previous fiscal year’s quarter, and came in ahead of consensus expectations of a EUR424 million outflow.
The MDAX-listed company confirmed its fiscal 2023 forecast, including a mid-to-high three-digit-million-euro range for adjusted EBIT, with free cash flow before mergers and acquisitions and net income to at least break even.
Write to Pierre Bertrand at pierre.bertrand@wsj.com