Financial Statements and Management Report - Thyssenkrupp

1.2 Management report Results of operations
Results of operations
ThyssenKrupp AG achieved improved income from investments in
2010/2011. This was partly offset by increased write-downs of
investments and a decline in tax income.
General economic conditions
Economic momentum slowed noticeably over the course of 2011. Global GDP growth of only 3.4% is
expected in 2011, compared with 4.6% in 2010. The decline is attributable above all to the slowdown in the
industrialized countries, while most emerging countries continue to show relatively solid expansion rates.
Growth noticeably weaker in Europe and the USA
In the euro zone GDP growth is expected to average 1.6% in 2011. While the pace of growth remained high
at the beginning of the year as a result of strong business spending, it slowed sharply as the year
progressed. The German economy showed appreciably stronger growth of 2.9% in 2011, mainly reflecting
the good order situation in the industrial sector. However, consumer and business spending will have been
impacted by the uncertainties on the financial markets in the latter part of the year.
In the USA the economy cooled noticeably. The continued difficult situation on the labor market, the still
weak real estate sector, and the pressure to consolidate public-sector budgets impacted economic growth,
which is expected to reach only 1.6% in 2011. Economic activity in Japan was severely depressed as a
result of the natural disaster and its aftermath. Japan’s GDP is expected to contract by 0.5% in 2011.
Business performance
ThyssenKrupp AG achieved improved income from investments in 2010/2011. This was partly offset by
increased write-downs of investments and a decline in tax income. Good demand for the products and
services of the group led by ThyssenKrupp AG resulted in a substantial rise in orders and sales. In addition,
our measures to improve the structure of earnings had an effect.
The sales and particularly the order intake of the subsidiaries led by ThyssenKrupp AG increased strongly in
2010/2011. All business areas contributed to this growth. Demand for carbon and stainless steel,
automotive components and in naval shipbuilding was particularly strong.
04