ThyssenKrupp Mulls Closing Some of its U.S. Auto Operations

ThyssenKrupp AG chief executive Ekkehard Schulz said the steel conglomerate is mulling the closure of some of its U.S. Automotive operations, which are struggling as a result of the downtown in the world's largest car market. Schulz said ThyssenKrupp would close some, without specifying which, operations "in a worst case" scenario.

From AFX News Limited

DUESSELDORF, Germany — ThyssenKrupp AG chief executive Ekkehard Schulz said the steel conglomerate is mulling the closure of some of its U.S. Automotive operations, which are struggling as a result of the downtown in the world’s largest car market.

Schulz said ThyssenKrupp would close some, without specifying which, operations “in a worst case” scenario.

ThyssenKrupp booked about $33 million in impairment charges in the 2005 fiscal year through September at its Detroit operations. However, its European chassis and other businesses remained profitable. Overall, the Automotive unit saw its full-year pretax profit decline to approximately $57 million from $305 million while sales rose to $9.2 billion from $8.4 billion.

Schulz said the company will face unspecified restructuring charges in the final quarter of the 2005 calendar year.

In addition, the chief executive said he is optimistic that the company’s bid for BAE Systems PLC’s Atlas will succeed. Earlier press reports indicated that several companies are bidding up to $352 million for the unit.

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