German conglomerate Thyssenkrupp on Wednesday raised its full-year outlook for the first time in nearly four years, boosted by a recovery at its steel unit that could strengthen the case for a spin-off.
Thyssenkrupp’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 a year earlier.
“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,” CEO Martina Merz said.
Thyssenkrupp shares rose as much as 7.1% to a one-year high.
Thyssenkrupp’s steel division, which has drawn a bid from Britain’s Liberty Steel, expects to nearly break even this fiscal year, compared with a low triple-digit million euro loss previously expected.
