ESSEN, Germany - Thyssenkrupp on Wednesday forecast a 42 percent rise in 2019 profit for its continuing operations, which strips out steel, in an effort to win back investors that have fled the conglomerate since an announcement to split into two.
Adjusting its outlook to reflect the expected closing of a European steel joint venture with Tata Steel, Thyssenkrupp said adjusted operating profit would rise to more than 1 billion euros ($1.14 billion) in the 2018/19 financial year.
That is an increase of at least 42 percent from the 706 million euros the group reported for 2017/18.
Thyssenkrupp is undergoing one of its largest transformations under a plan to spin off its capital goods business - elevators, car parts and plant engineering - to untangle its complex structure which also covers shipbuilding and materials trading.
"We initiated one of the biggest realignments in the history of the company," Chief Executive Guido Kerkhoff said. "At the same time we identified potential for further improvements in all businesses which we are now systematically addressing."
Since the corporate split was announced, shares in the group have lost 28.6 percent, hurt by a profit warning earlier this month as well as uncertainty over quality issues at its car parts business and potential cartel fines.