Industrial conglomerate Thyssenkrupp: loss growth and recovery measures
Thyssenkrupp is Germany’s largest industrial group with more than 450 subsidiaries and representative offices around the world. The other day the management announced that it had refused to pay dividends, which was the first time in 6 years. This news has caused active discussion and fluctuations of the corporation’s shares on the stock markets.
The reason for this decision is the growing annual number of losses. Over a period of six years, this amount has increased five times. Last year the net loss of Thyssenkrupp rose to 304 million euros, although the year before it was 62 million euros. The Group’s profit decreased by 44 percent to 802 million Euros.
This performance is primarily due to the limited availability of instruments and the ability to analyse and forecast individual segments, which is dependent on fluctuations and cyclicality. This group includes the automotive segment, which for Thyssenkrupp is the largest customer category.
The management of the concern hopes that new investments and support of current partners will help to restore balance and improve the financial situation. In the near future, the corporation plans to sell its elevator division. According to preliminary data, its value may amount to about 17 billion euros.
The main industry for the German corporation is the production of various steel grades, Thyssenkrupp ranks first in the world by its production volumes. The company was formed in 1999 as a result of the merger of two major industrial enterprises.
Thyssenkrupp is among the ten main suppliers of products for the automotive industry, the factories of the industrial giant produce the largest excavators and escalators.
The history of the huge corporation began in 1811 in Essen, where Alfred Krupp created a small enterprise for the production of cast steel and blanks for coinage.
The success of the company brought the invention of seamless wheels, which allowed it to become a market leader. Krupp invented three wheels to overlap each other, which became the company logo. This mark is still used today as a distinctive feature of Thyssenkrupp.
Over time, the company expanded its product range with the production of sheet steel and coil steel, starting to produce locomotives, products for weapons, trucks. Cannon barrels, which were made of Krupp steel, were also in demand. For this he was nicknamed “Cannon King”.
The company developed and expanded, maintaining the traditions and quality level, which were marked by Alfred Krupp. In 1999, several companies were merged to form the modern Thyssenkrupp conglomerate, which is the hallmark of the German industrial segment.
