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ThyssenKrupp sells plant, narrowing loss

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Staff writer |
ThyssenKruppThyssenKrupp AG announced the sale of its rolling and coating plant in Calvert, Alabama to a consortium of ArcelorMittal SA and Nippon Steel & Sumitomo Metal Corp. for $1.55 billion, putting a restraint on its loss-making Steel Americas operations.

The transaction includes a six-year agreement to purchase two million tons of slab annually from ThyssenKrupp's integrated steel mill complex located in Rio de Janeiro, Brazil. The Brazil plant is also on the block, with ThyssenKrupp turning down offers from a pair of South American competitors earlier in the year.

With the sale of the Alabama mill, ThyssenKrupp plans to increase its capital by up to 10 percent.

ThyssenKrupp also said its net loss for fiscal 2013 narrowed to 1.5 billion euros from 5 billion euros a year ago. Its adjusted earnings before interest and tax, or EBIT, jumped to about 1 billion euros in 2013 from 599 million euros a year ago. The company had postponed the release of its financial results, pending the deal with ArcelorMittal and Nippon.

The company said its order intake from continuing operations (including Steel Americas) was lower by 12 percent at 38.6 billion euros, compared with a year ago. Looking ahead to fiscal 2014, ThyssenKrupp expects strong improvement in adjusted EBIT to 1 billion euros, with the outlook including Steel Americas and excluding VDM and AST.

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