The Group's adjusted EBIT increased in the 1st half by 34 percent to €944 million (prior year €703 million). The high-margin capital goods businesses were influenced by adverse currency effects and higher material costs. Despite these effects Elevator Technology again showed strong 1st half earnings with adjusted EBIT of €424 million (prior year €422 million). As expected, Components Technology was down slightly year-on-year at €170 million (prior year €176 million). This also reflected continued low demand for wind turbine components. Industrial Solutions recorded adjusted EBIT of €(11) million (prior year €64 million). The restructuring initiated in the last fiscal year is expected to provide a significant earnings improvement in the second fiscal half. At the materials businesses there was a noticeable earnings improvement in particular at Steel Europe in a continuing good market environment and thanks to performance measures. Adjusted EBIT increased from €119 million to €358 million. Materials Services at €151 million was slightly down from the prior year (€173 million).

thyssenkrupp almost quadrupled its 2nd quarter net income year-on-year from €64 million to €253 million. 1st half net income increased even more sharply from €58 million in the prior year to €344 million. After deducting minority interest, net income was €321 million (prior year €42 million); earnings per share came to €0.52 (prior year €0.07).

Free cash flow before M&A in the 1st half improved significantly by €477 million year-on-year but as expected remained negative at €(1,381) million. In the 2nd quarter, however, thyssenkrupp generated a positive cash flow of €168 million, which was likewise a significant improvement from the prior-year quarter (€(139) million). The temporary increase in net working capital in the materials businesses in the 1st quarter was partly offset. Accordingly the Group's net financial debt came to €3.5 billion (September 30, 2017: €2.0 billion).

For the current fiscal year 2017 / 2018 thyssenkrupp confirms its forecast for the Group. Adjusted EBIT is expected to increase to €1.8 to €2.0 billion (prior year, continuing operations: €1,722 million). On this basis the company forecasts a significant increase in net income versus the prior year (prior year, continuing operations: €271 million). Free cash flow before M&A is expected to be positive again (prior year, continuing operations: €(855) million).

With regard to the planned steel joint venture, as announced in mid-April 2018 thyssenkrupp expects that a decision can be made by the Boards in the first half of 2018.  

With the planned joint venture thyssenkrupp achieves a key prerequisite for a sharpening of the Group's strategic target and subsequently also the financial targets. The Executive Board will present the further refinement of its strategy to the Supervisory Board after the signing.

END