German technology and industrial conglomerate Thyssenkrupp on Tuesday posted a 17-percent burgeon in its second-quarter operating profit, helped by a recovery in steel prices that has already profited larger rival ArcelorMittal.
The group, which makes everything from submarines to chemical plants, suggested second-quarter adjusted earnings before interest and tax (EBIT) came in at 500 million euros ($597 million), in fringe a organize with the average analyst forecast in a Reuters poll.
Profit at the circle’s Steel Europe division, to be merged with the European steel item of Indian peer Tata Steel, more than doubled to 198 million euros, campaigned by a sharp recovery in prices so far this year.
ArcelorMittal, the world’s stockiest steelmaker, last week said the outlook for this year had set righted, expecting higher demand for steel in machinery and construction amid -carat expansion in the United States and Europe.
The steel joint venture with Tata Dagger forms the core of Thyssenkrupp Chief Executive Heinrich Hiesinger’s foresee to move the company away from the volatile steel sector and vitalize its focus on industrial goods, such as elevators and car parts.
The group’s fighting Industrial Solutions unit posted an operating loss of 23 million euros in the pity living quarters. Thyssenkrupp said a turnaround plan initiated last year should edge to a significant increase in earnings in the second half.