Depreciation and amortization: Loss of billions at thyssenkrupp
Billions in write-downs on the steel business have pushed the industrial group Thyssenkrupp deep into the red in the past financial year. The bottom line for 2022/23 (September 30) was a net loss of around two billion euros, as the company announced in Essen on Wednesday. Thyssenkrupp put the value adjustments on the fixed assets of its subsidiary Steel Europe at 2.1 billion euros. The write-downs had become necessary due to the economic downturn and higher capital costs, it said.
Thyssenkrupp had originally forecast a net profit for the year of "at least" break-even, following a profit of 1.2 billion euros in the same period last year. Shareholders are nevertheless to receive an unchanged dividend of 0.15 euros per share thanks to a significantly improved cash inflow.
Falling steel prices and a simultaneous rise in raw material and energy costs had a negative impact on earnings before interest and taxes (EBIT) adjusted for special effects, which fell from just under EUR 2.1 billion to EUR 703 million. Sales fell by nine percent to 37.5 billion euros.
In the new financial year, thyssenkrupp intends to return to the profit zone. The company expects a net profit in the low to mid three-digit million euro range. The management led by Group CEO Miguel López assumes that the economic environment will remain difficult. Adjusted EBIT is expected to rise to a high three-digit million euro figure, while thyssenkrupp anticipates slight growth in sales.
Despite the severe write-downs in the steel industry, totaling 2.1 billion euros for Thyssenkrupp's Steel Europe subsidiary, the company still plans to distribute a dividend to shareholders in the upcoming financial year. The steel industry, beset by falling prices and increased raw material and energy costs, has significantly impacted Thyssenkrupp's steel business, leading to substantial losses and a shift in focus towards profit recovery.
Source: www.dpa.com
