thyssenkrupp AG (Formerly ThyssenKrupp AG) Business Report FY ended Sep. 2018

Financial Overview

(in million EUR)
  FY ended Sep. 30, 2018 FY ended Sep. 30, 2017 Rate of
change (%)
Sales 42,745 42,971 (1) 1)
EBIT 1,045 687 52 -
Components Technology
Sales 7,875 7,571 4 2)
EBIT 120 297 (60)  -
Steel Europe
Sales 9,470 8,915 6 3)
EBIT 471 493 (4.5) -

1) Net Sales
-The Company’s net sales for the fiscal year ended September 30, 2018 decreased by 1% to EUR 42,745 million. Since last fiscal year the Company completed the divestiture of the Company’s Steel Americas unit, the Company stop recording the gains of sales from the business in this fiscal year. Disregarding of the discontinued business, net sales of this fiscal year was 3% increase year-on-year. The order intake of Components Technology reached a new high despite adverse currency effects.

2) Components Technology
-In the fiscal year ended September 30, 2018, the Company’s Components Technology business area had net sales of EUR 7,875, an increase of 4% over the previous year. The order intake of this business area reached a new high despite adverse currency effects. Generally robust growth in demand for car components in Western Europe and China offset declining demand in the USA. The market environment for heavy truck components in the USA also contributed.

3) Steel Europe (discontinued operation)
-Net sales for the Company’s Steel Europe business area in the fiscal year ended September 30, 2018 increased 6.0% to EUR 9,470. The increase in sales was driven by an increase in sales volumes combined with an increase in steel prices. Volume growth was achieved mainly with customers in the automotive industry and their suppliers, while supplies to other industrial customers were mostly slightly lower.


Major Activities

-The Company announced that the group will be split into two much more focused and efficient companies.  Both companies will continue to use the name thyssenkrupp.

thyssenkrupp Industrials will consist of three units: firstly, the elevator business, secondly the automotive supplier business and thirdly core plant construction. The elevators remain unchanged in their current configuration. Components Technology will focus on the automotive business. A new addition is the System Engineering division, which builds production lines for cars, for example, and is currently part of Industrial Solutions.

The other part - thyssenkrupp Materials - will consist of the following units: Materials Services, the slewing bearings and forging businesses as well as the marine business. 

-Tata Steel Limited and the Company have signed a Memorandum of Understanding (MOU) to create a leading European steel enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of the thyssenkrupp group. The proposed 50:50 joint venture - Thyssenkrupp Tata Steel - would be focused on quality and technology leadership, and on the supply of premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products.


R&D Expenditure

(in million EUR)
  FY ended Sep. 30, 2018 FY ended Sep. 30, 2017 FY ended Sep. 30, 2016
Total 787 816 778


R&D Structure

-As of September 30, 2018, the Company has approximately 5,000 employees working in research and development across 90 locations.

R&D Facilities

-thyssenkrupp Presta North America (thyssenkrupp Steering) announced that it is investing more than USD 7 million to create a new 37,000-square-foot technology center in Fishers, Indiana. The new facility will allow thyssenkrupp Steering to develop technologies to aid in the comfort and safety of steering as well as advance solutions to improve fuel economy and reduce carbon emissions. The technology center is expected to be fully operational by spring 2018 and, once complete, will house the company's engineering operations currently located in Indianapolis and will complement its manufacturing facility in Terre Haute, Indiana and its sales and technical office in Troy, Michigan. (Indiana Economic Development Corporation release on December 19, 2017)


-In the fiscal year ended September 30, 2018, the Company registered around 2,200 new patents and utility models. In total, the Company has 20,700 patents and utility models.

Capital Expenditures

(in million EUR)


FY ended Sep. 30, 2018 FY ended Sep. 30, 2017 FY ended Sep. 30, 2016
Overall 1,386 1,666 1,387
-Components Technology
(discontinued operation)
523 551 488
-Steel Europe 442 566 400

-The Company’s investments in the Components Technology business area focused on supporting existing facilities and expanding production capacity for electric steering systems, specifically in China, Mexico and Hungary. The Company constructed a new plant in Mexico and expanded a plant in Romania that manufactures active and passive damping systems. The Company is in the process of developing two new highly automated plants in Hungary and China for the production of springs and stabilizers. Finally, the Company expanded production capacity of cylinder head modules in plants in Hungary and Mexico.



-The Company announced that it opened a new production shop for steering components at its Schoenebeck site in Saxony-Anhalt. Starting in 2018, the site will produce ball screws for electric power steering systems in the 3,000-square-meter shop. The plant expansion will create 65 new jobs. The new shop represents the start of the planned step-by-step expansion of the Schoenebeck production facility in the future. The project has received funding of EUR 1.5 million from the state of Saxony-Anhalt towards the total investment of approximately EUR 10 million. (From a press release on October 25, 2017)

-The Company announced to integrate its forging activities within its components business area to form one of the world’s biggest forging organizations with sites in North and South America, Europe, India and China. The new business unit thyssenkrupp Forged Technologies will start on October 1, 2018 with roughly 7,000 employees at 18 production sites and a broad distribution network in over 70 countries. The business unit has sales of over EUR 1 billion and operates over 50 forging presses worldwide. It will be managed from thyssenkrupp’s headquarters in Essen. The product portfolio includes forged and machined components and systems for the automotive and construction machinery sectors and for general mechanical engineering applications. The new unit comprises the previously independent business units Forging & Machining, which is headquartered in Brazil and produces crankshafts, and undercarriages, which is in Italy. (From a press release on October 4, 2017)

-Hungarian Investment Promotion Agency (HIPA) informed that an investment exceeding EUR 100 million was realized by thyssenkrupp Components Technology Hungary in Jaszfenyszaru. In the plant, electric steering systems and cam shafts integrated cylinder heads will be manufactured. The investment creates almost 450 new jobs. (From a press release on March 2, 2018)