Steel elevators give German industrial group ThyssenKrupp a lift, as it reports a jump of more than a third in its quarterly operating profit. Hayley Platt reports.
ThyssenKrupp's quarterly operating profit jumped by more than a third, driven by demand for steel and elevators. Adjusted earnings before interest and tax comfortably beat expectations, rising 37 percent to 539 million euros. It's evidence that the German Industrial Group's turnaround programme is working. Traditionally a steelmaker, ThyssenKrupp has diversified into an industrial goods group. It's been cutting costs to help slim down its operations. That helped it deliver its best results in almost four years, pushing shares up above 5 percent, and providing a bright spot in an otherwise subdued German economy. The latest data showing Industrial Output and exports falling in June. JP Morgan's David Stubbs. SOUNDBITE: David Stubbs, Global Market Strategist, JP Morgan, saying (English): "I think the German economy is one of the pillars of strength inside Europe. But if people are expecting it to accelerate to really impressive levels I think have been disappointed and will continue to be disappointed. I think German consumers remain in good health but also in a cautious mood." Krupp's elevator technology is the group's most profitable unit, accounting for over a third of the company's profit. Much of that business comes from the U.S. and South Korea, but six percent comes from China. Krupp says it's confident over its future there, despite a slowing economy and the recent devaluation of its currency. It's sticking to its adjusted EBIT target of 2 billion euros. And hopes to resume paying a dividend.