Thyssenkrupp puts units up for review due to cash drain

REUTERS: Struggling German conglomerate Thyssenkrupp, whose shares hit a fresh 16-year low yesterday, put three underperforming businesses under review last week, hoping this will ease pressure on the group’s cash flow.

The new plans come in addition to a planned sale or listing of its elevators division, by far its most profitable business.

The three units put up for review -- Springs and Stabilizers, System Engineering and Heavy Plate -- account for 4 percent or 1.7 billion euros (US $ 1.9 billion), of group sales but a quarter of cash outflow this year, more than 250 million.

Their combined 9,300 staff make up 5.7 percent of Thyssenkrupp’s total workforce. The company is now drawing up restructuring plans. If that should fail the businesses could be sold or shut down.