TK Stainless

20
ForGinG operaTions
ThyssenKrupp Acciai Speciali Terni
At ThyssenKrupp Acciai Speciali Terni, too, the weakening of demand for stainless steel products over
the year, above all from service centers and distributors, was reflected in order intake. This demand
weakness was caused among other things by high volumes of imports coming into Europe, which
impacted the Italian stainless market in particular. The sales of the Italian business unit slipped to
€2.7 billion due to lower shipments and decreased transaction prices. In addition, there were
production losses at the Turin plant after the accident in December 2007. ThyssenKrupp Acciai Speciali
Terni posted a loss for 2007/2008. The drastic decline in earnings was mainly due to a weaker Italian
stainless steel market. Earnings were additionally impacted by the extra costs associated with the
decision by the EU Commission not to extend energy compensation payments. In addition, costs were
incurred by the commenced relocation of production from Turin to Terni and from the fire in Turin in
December 2007. The forging operations exceeded their prior-year earnings thanks to a stable market
environment. At ThyssenKrupp Titanium the volume of new orders increased strongly. Shipments were
also higher, while sales fell slightly.
ThyssenKrupp Mexinox
ThyssenKrupp Mexinox held its own in a difficult market environment in the NAFTA region. Orders were
up slightly from the prior year in terms of volume but decreased in value terms due to lower prices.
Sales fell to €591 million. The substantial drop in profits was due to the weak state of the US market.
However, the stable situation on the Mexican market weakened these negative effects.
Shanghai Krupp Stainless
At Shanghai Krupp Stainless order volumes were down from the prior year. Sales were lower at €284
million, and profits also fell significantly. The deterioration was due to a continuing weak and difficult
market environment in China - caused by increasing overcapacities.
ThyssenKrupp Stainless International
The ThyssenKrupp Stainless International business unit recorded a fall in the volume and value of
new orders due to the difficult market environment and low transaction prices. Sales decreased to
€1.2 billion. Following a profit in the prior year, the business unit made a loss. The significant drop in
earnings resulted from the generally weak state of the international stainless steel markets, which led
to a decrease in margins and shipments and from inventory depreciation due to strong commodity
prices.
ThyssenKrupp VDM
In the nickel alloy business of ThyssenKrupp VDM order intake and sales were lower than a year earlier.
Wire production was successfully relocated from Bärenstein to Werdohl. With the construction of the
new forge, which began operation in May 2008, ThyssenKrupp VDM widened its range of products in
particular for the aerospace industry. The business unit was unable to maintain its prior-year profit
level. On the European markets, increased exports by US suppliers - favored by the weak US dollar
- resulted in high price pressure. In addition, the strong euro meant that prices for exports to the US
dollar region were no longer competitive.