Thyssenkrupp Group remains committed to developing its tk Materials Services distribution division and confirmed its plans during a recent conference call overseen by Kallanish.
For more than a year, the German group has stated that it is open to investors in its division, and on a conference call supported the division's readiness to work in the capital market.
This is part of thyssenkrupp's larger plan to transform the diversified conglomerate into a holding company of largely independent companies, which also applies to its thyssenkrupp Steel division.
While the steelmaking division reported lower revenue in the first half of the fiscal year due to lower selling prices, tk Materials Services grew, partly due to higher prices.
The business of the distribution division in North America and international trade is more protected from negative events in Germany and Europe. Currently, 39% of the division's revenue comes from the United States, where it is among the 20 largest distributor holders of shares. Many of the company's divisions in the United States offer additional services.
The division reported stable revenue for the half-year at 5.78 billion euros ($6.72 billion) year-on-year, although shipments in the reporting period decreased from 2.3 million tons year-on-year to 1.7 million tons.
It notes that to date, the largest growth has been recorded in the warehouse business in North America, while the warehouse business in Europe, automotive-related service centers, and supply chain businesses have also developed positively.
The Group remains optimistic about the prospects of its division and forecasts full-year growth of 2-5% compared to the previous year.
Author: Christian Kel
Kallanish.com
