German industry giant ThyssenKrupp posts strong profit rise

German heavy industry giant ThyssenKrupp said Thursday it had booked a strong boost in profit for the 2014-2015 business year and forecast healthy growth for the current year.

ThyssenKrupp, which runs its business year from October to September, said that adjusted earnings before interest and taxes (EBIT) climbed by 26 percent to around 1.7 billion euros ($1.8 billion).

Net profit surged 37 percent to 268 million, while turnover climbed four percent to 42.8 billion euros.

ThyssenKrupp, which is active in steel, a sector with volatile prices, has shifted its focus to products such as elevators, industrial plant technology, submarines and car parts -- a strategy the company said was now paying off.

"We have delivered on our promise," chief executive Heinrich Hiesinger said in a statement.

"We have stabilised ThyssenKrupp and further advanced the integration of the group."

The company expected the trend to continue in the current business year with a "clear improvement" in net profit, due in part to 850-million-euro cost-cutting drive.

However it said global economic uncertainty and "increased pressure" on raw material markets, particularly in Asia, would weigh in 2015-2016 on EBIT, which is forecast to reach between 1.6 and 1.9 billion euros.