ThyssenKrupp returns to profit, lifted by elevator unit

German heavy industry and steel giant ThyssenKrupp today confirmed its full-year forecast after swinging back to profit in the first quarter, lifted up by its elevator and auto parts businesses.
In what it described as a "good start to the new fiscal year", the industrial giant reported a net income of 8.0 million euros (USD 8.5 million) between October and December, recovering from a 23-million-euro loss over the same period a year earlier.
Sales were up six percent at 10.1 billion euros in the first quarter, slightly beating analyst expectations, while the group's closely watched adjusted earnings before interest and tax rose by 40 per cent to 329 million euros.

The uptick comes as ThyssenKrupp is switching its focus from its traditional steel business, which has been battered by low prices, to making industrial goods and offering technical services.
Chief executive Heinrich Hiesinger said the latest results showed that "our strategy is right".
"We're increasing our share of capital goods and services businesses. That will enable us to generate more stable earnings and achieve profitable growth in the future," he said in a statement.

The group's performance was led by its elevator unit and car and truck parts division, both of which saw earnings growth of six percent.
Hiesinger said the group was also seeing "the first positive earnings effects" from a recent recovery in steel prices, a trend that is expected to continue into the new year.

Looking ahead, ThyssenKrupp said it stood by its forecast for the 2016-2017 fiscal year, with adjusted earnings before tax and interest "expected to increase to around 1.7 billion euros" while net profit should reach "a clear year-on-year improvement".