Flagging steel recovery time lag, Thyssenkrupp swings to Q3 profit

<p style="text-align: center;"><img src="/ueditor/php/upload/image/20210813/1628828823747720.png" title="1628828823747720.png" alt="1.png"/></p><p>&nbsp;Thyssenkrupp&nbsp;on Wednesday swung to an operating profit in the third-quarter on the back of high materials prices and&nbsp;automotive demand, but cautioned the positive impact on its steel division, Europe&#39;s second largest, would be delayed.<br/><br/>In the April-June period, adjusted earnings before interest and tax (EBIT) came in at 266 million euros ($312 million), from compared with a 693 million loss last year when the pandemic took a toll on the German conglomerate.</p><p><br/></p><p>Shares in the submarines-to-car parts group were indicated to open up 1.8% in pre-market trade.<br/><br/>At the group&#39;s steel division, which could be spun off next year, adjusted EBIT reached 19 million euros in the third-quarter, compared with a 309 million loss a year earlier.<br/><br/>&quot;This is a good thing, but our long-term contract structures mean there is a delay in increased raw material and steel prices feeding through to our revenues and earnings,&quot; Chief Financial Officer Klaus Keysberg said.<br/><br/>&quot;The positive effect on earnings will come. We&#39;ll just see it later than our competitors.&quot;<br/><br/>Long-term steel contracts mean market developments take about half a year before showing up in Thyssenkrupp&#39;s accounts, separating it from peers such as Salzgitter, which on Wednesday posted its highest first-half pre-tax profit in 13 years.<br/><br/>Thyssenkrupp group is trying to simplify its structure after years of underperformance and recently agreed to sell two units.</p>