Thyssenkrup has posted net income for 2015/16 fiscal year of EUR261m (US$275m) (prior year EUR268m), while net income attributable to the shareholders came to EUR296m (prior year EUR309m).

The cash flow target was significantly exceeded, while free cash flow before M&A came to EUR198m (prior year EUR115m). A negative to break-even figure had been forecast.

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Overall the fiscal year was marked by high import and price pressure in the materials businesses. Especially in Europe, the recovery in prices came later than originally expected and from a lower level.

These effects overshadowed the progress in the capital goods businesses and were also the reason for revising the forecast mid-year.

“The volatility on the materials markets shows that we must continue with Thyssenkrupp’s transformation into a strong industrial group,” said Thyssenkrup CEO, Heinrich Hiesinger. “The Strategic Way Forward is our plan for transforming Thyssenkrupp and the appropriate response to an increasingly volatile world.

“We aim to increase our share of capital goods and service businesses and achieve profitable growth. Our minimum long-term target of at least EUR2bn adjusted EBIT remains unchanged.”

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Hiesinger stressed programmes to increase earning power are under way in all business areas. “We’re not waiting around, we’re concentrating on the things that are in our own hands,” he added.

“In parallel with this, Thyssenkrupp continues to invest systematically in research and development and building new production facilities. Innovations are the key to our company’s future. That’s why we have now increased our spending on them for five years in a row”.

Since the 2011/2012 fiscal year more than EUR3.5bn has been invested in research and development, EUR778m in the past fiscal year alone. 

In the past fiscal year the Group’s order intake and sales were lower year-on-year by 9% and 8% respectively. On a comparable basis too, excluding currency and portfolio effects, the figures were down by 8% and 7% respectively.

The main reason was the high import and price pressure on the materials businesses in the first half of the fiscal year. The price falls alone caused a drop of 5%.

The Industrial Solutions business area also registered a weakening of the markets for chemical plants and mining equipment, as well as an absence of major naval shipbuilding projects.