Thyssenkrupp steel unit aims to triple core profit in turnaround push

Thyssenkrupp Steel Targets Tripling Core Profit Amid European Market Shifts

Thyssenkrupp Steel's Profit Ambitions and Market Dynamics

Profit Growth Strategy and Financial Targets

FRANKFURT, Sept 28 (Reuters) - Thyssenkrupp's <TKAG.DE> steel division, Europe's second-largest steelmaker, aims to at least triple its core profit over the mid-term, it said on Monday, boosted by capacity and job cuts as well as higher trade barriers against cheap Asian steel.

Adjusted earnings before interest, tax, depreciation and amortisation are expected to rise to at least €1.2 billion ($1.4 billion) over the mid-term, up from around €400 million this year, the division said during a capital markets day.

Timeline and Margin Goals

It did not provide a firm target date by which that ambition would be met, saying the mid-term margin target would be more than 11%, compared with more than 4% in the current fiscal year that ends this week.

Market Environment and Regulatory Impact

European Steel Demand and Regulatory Tailwinds

"On the one hand, we have a very resilient, stable European steel demand. And on the other hand, we see some tailwind from the regulatory environment due to safeguards," Thyssenkrupp Steel Europe (TKSE) CEO Marie Jaroni said.

Import Quotas and Local Industry Challenges

Brussels this year imposed stricter limits and quotas on steel imports from Asia, which have been a major problem for local steelmakers already burdened by high energy and labour costs.

Shareholder Response and Corporate Strategy

Shares in Thyssenkrupp, whose CEO Miguel Lopez confirmed plans to divest a majority stake in TKSE, jumped on the news and were 2.3% higher at 1356 GMT.

($1 = 0.8800 euros)

(Reporting by Christoph SteitzEditing by Thomas Seythal and Miranda Murray)