Thyssenkrupp raises full-year forecast on automotive recovery

German conglomerate Thyssenkrupp (DE:TKAG) on Wednesday raised its full-year outlook for sales, cash flow and profits, citing improved demand for automotive components and materials.

“In a continuing uncertain market environment, we had a good first quarter: we’re noticing signs of an economic recovery and our measures to improve performance in the businesses are starting to bear fruit,” Chief Executive Martina Merz said.

The group now expects to almost break even on an adjusted operating profit level, having previously expected a mid triple-digit million euro loss in the year to September.

The group’s steel division, which could be sold, spun off or kept, swung to an adjusted operating profit of 20 million euros ($24 million) in the first quarter, compared with a loss of 127 million in the same period last year.

On a group level, adjusted operating profit came in at 78 million euros in the October-December quarter, a level that will decline in the January-March period, the company said in presentation slides.

($1 = 0.8248 euros)