Thyssenkrupp Nucera, the German electrolyzer business, has announced a notable increase in net income for the fourth quarter. However, the company has also issued a warning regarding the potential impact of start-up costs in fiscal 2024.
Fourth Quarter Performance
In the fourth quarter, Thyssenkrupp Nucera reported a net income of 4.3 million euros ($4.7 million). This represents a significant rise compared to the same period last year. The company's sales also experienced impressive growth, increasing by 47% to reach EUR159.4 million.
Thyssenkrupp Nucera attributes these positive results to the high sales growth achieved in its alkaline water electrolysis business. Additionally, improved project assortment and enhanced project execution in both chlor-alkali and alkaline water electrolysis contributed to the company's success.
Although the company experienced a decline of 35% in order intake for the quarter, amounting to EUR78.8 million, its total backlog remains strong at EUR1.38 billion.
Fiscal Year Results
Looking at the entire fiscal year that ended on September 30, Thyssenkrupp Nucera saw a significant increase in net income. It more than doubled from EUR6 million to EUR22.5 million.
The company is optimistic about the future and expects substantial sales growth in fiscal 2024. Alkaline water electrolysis projects are anticipated to be the primary driver of this growth.
Potential Impact in Fiscal 2024
Thyssenkrupp Nucera acknowledges that substantial start-up costs will be incurred for the implementation of its growth strategy and the scaling of its alkaline water electrolysis business. The company aims to improve its competitiveness and profitability in the long term and sustainably. As a result, a negative EBIT figure in the mid-double-digit EUR million range is expected.
Conclusion
Thyssenkrupp Nucera's fourth-quarter performance has demonstrated its strong position in the market. Despite anticipating some challenges due to start-up costs in fiscal 2024, the company remains confident in the significant sales growth it expects to achieve.
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