UPDATE 2-ThyssenKrupp gives upbeat 2011 outlook after Q4

* Q4 pretax profit 107 mln eur vs Rtrs poll avg 99.3 mln

* Proposes FY div 0.43 eur/shr vs 0.30 eur/shr in poll

* Sees FY10/11 sales up 10-15 pct

* Sees FY10/11 adj EBIT around 2 bln eur vs 1.2 bln FY09/10

* Shares down 2 pct, sector index (.SXPP: ) up 0.7 pct
(Adds background, analyst comments)

FRANKFURT, Nov 30 (BestGrowthStock) – Steelmaker ThyssenKrupp
(TKAG.DE: ) gave an upbeat outlook for 2011 after the economic
boom in its German home market and cost cuts offset ramp-up
expenses of new plants in its last quarter.

ThyssenKrupp benefited from a strong rebound in Germany’s
export-driven economy, whose automotive and engineering sectors
posted robust profit margins while construction remained weak.

“Thyssen is exposed to the booming German markets as well as
the relatively favourable environment in Austria, the
Netherlands and Scandinavia,” said Herman Reith, an analyst at
BHF Bank.

“There is also the euro-dollar rate, which makes exports
from these countries competitive,” he said.

The euro zone’s biggest economy is powering ahead of other
states, with exporters’ strength in emerging markets helping
Germany grow while domestic demand is steadily taking hold.

German economic bellwether Siemens (SIEGn.DE: ) this month
signalled its confidence with a sharp dividend hike and a
promise of profit growth driven by emerging markets, underlining
the strength of the capital goods industry in Germany.

ThyssenKrupp said it expects sales growth of 10-15 percent
for its current year to September 2011, with adjusted earnings
before interest and taxes (EBIT) at around 2 billion euros
($2.63 billion) compared with 1.2 billion in fiscal 2010.

The average estimate for 2011 sales in a Reuters poll was
47.45 billion euros, up 11.3 percent from 2010. [ID:nLDE6AO1O6]

“ThyssenKrupp remains cautiously optimistic about
developments in its core markets and key customer sectors,” the
company said on Tuesday.

Most European rivals have published restrained outlooks for
the next quarters, warning of leaner times awaiting steelmakers
after they benefited from an upturn in demand during the global

ArcelorMittal (ISPA.AS: ), the top global steelmaker, said
last month it was suffering muted demand, rising costs and
falling prices and predicted a lower fourth-quarter profit (Read more your timing to make a profit.) than
investors had hoped for. [ID:nLDE69O0SQ]

The steelmaker has forecast the global steel market will
grow 5-6 percent next year, in line with the World Steel
Association’s estimate of growth of 5.3 percent, compared with
13 percent this year.

ThyssenKrupp “has almost 100 percent capacity utilisation.
In contrast, ArcelorMittal in total has utilisation rate of 71
percent and even below that in Europe, with 10 out of 25 blast
furnaces idled,” BHF’s Reith said.


Analysts said prices of long carbon steel products, which
ArcelorMittal makes and which are reliant on the construction
sector, have lagged ThyssenKrupp’s flat carbon steel products
used in cars, capital goods and household appliances.

ThyssenKrupp’s margins were also flattered by a two-year
cost-cutting programme that had originally targeted 1.5-2.0
billion euros savings by fiscal year to September 2011.

The company said on Tuesday it would continue cost cuts and
“portfolio optimisation”, but did not provide details.

Last year, it sold its civil shipbuilding business and two
other non-core units. Now it is looking for a buyer for its
metal forming business and restructuring its weak stainless

In its fourth quarter to September 2010, ThyssenKrupp posted
adjusted pretax profit of 107 million euros, beating the average
analyst estimate of of 99.3 million euros in a Reuters poll.

The Steel Americas division continued to post higher losses
quarter-on-quarter on the back of ramp-up costs for three new
steel plants in Brazil and the United States.

ThyssenKrupp’s stock has risen 28 percent since it published
its third-quarter results on Aug. 13, outperforming an 18
percent gain by the STOXX Europe 600 Basic Materials index
(.SXPP: ).
(Editing by David Cowell)

UPDATE 2-ThyssenKrupp gives upbeat 2011 outlook after Q4