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ThyssenKrupp Reports Slip in Profits

By Associated Press

Berlin, Germany – Steelmaker ThyssenKrupp AG said Thursday that its third-quarter net profit slipped 21 percent, putting the blame on higher costs for raw material, including steel, the strong euro and bigger-than-expected costs on new steel mills in the U.S. and Brazil.

The Duesseldorf-based company earned euro573 million (US$853.9 million) in the April-June period compared with euro729 million a year earlier. Sales rose 5 percent to euro14.2 billion (US$21.2 billion) compared with euro13.4 billion last year.

Looking ahead, the company said it expected its full-year pretax profit to reach about $4.8 billion, slightly better than the $4.5 billion it had originally forecast.

That helped push ThyssenKrupp shares higher by 1.2 percent to $50.91 in Frankfurt.

The German-based company is building a massive steel plant in southwest Alabama.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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