GERMANY - Pension liabilities are still weighing on the ThyssenKrupp balance sheet, despite the firm's impressive EUR1.3bn cut in its net debt last year.
Investor confidence has fluctuated in the industrial giant since it announced its fiscal troubles last year, picking up only when the market turned bullish on cyclicals.
But despite ThyssenKrupp slashing its net debt from EUR7.73bn in 1999/2000 to EUR6.41bn for 2000/200, some commentators believe that further balance-sheet erosions are just biding time to surface.
According to the company’s annual report, total unfunded pension liabilities still stand at EUR6.91bn, including pension-related obligations, and post-retirement obligations other than pensions. The figure compares to almost EUR7bn for the previous, corresponding period.
Last year unfunded pension costs amounted to EUR433m.
The company has over 193,000 employees in 70 countries, and provides pensions to most of its employees in Germany. The majority of its staff in the US, Canada and UK also receive pension benefits. In other countries some employees receive benefits in accordance with local requirements.
By Madhu Kalia
Hyperbolic discounting and political temptation: Why Brexit-fuelled AE reversal would be a 'monumental' mistake
The home secretary has suggested AE should be scrapped in the event of a no-deal Brexit. Darren Philp explains why this would be misguided
The trustees of the Kodak Pension Plan No.2 (KPP2) have said it will likely enter the Pension Protection Fund (PPF) in "due course" after reviewing the scheme's investment in Kodak Alaris.
A US company has completed a £285m pensioner bulk annuity for around 1,100 of UK members with Legal & General (L&G).
Former BHS chief Dominic Chappell has been accused of trying to rewrite history as he seeks to overturn a conviction for failing to hand over information to the regulator.