ThyssenKrupp reports better-than-expected quarterly profit

ThyssenKrupp reported third-quarter profit that beat analysts’ estimates after Germany’s largest steelmaker cut costs.

Its shares rose the most in three months. Adjusted earnings before interest and taxes gained 37 per cent from a year earlier to €539 million in the three months through June, ThyssenKrupp said in a statement.

That topped the €496.3 million average of 12 estimates compiled by Bloomberg.

Spurred by weak steel prices, ThyssenKrupp’s strategy of expanding its elevator business, industrial division and components unit is starting to pay off.

In November, the Essen- based company reported its first annual net income in four years after having cut costs by €1 billion, exceeding an earlier target. ArcelorMittal last month cut its forecast for global steel demand growth amid a weakening Chinese economy.

"The figures are very pleasing," Sven Diermeier, an analyst at Independent Research GmbH, said by phone from Frankfurt. "I'm worried about the development in China. The weaker economic situation and currency may become a burden."

ThyssenKrupp rose as much as 5.8 per cent, the most since May 13th, and was up 1.8 per cent in Frankfurt earlier. It was among the biggest gainers on the German benchmark Dax.

Bloomberg