Thyssenkrupp adjusts projections downward once more.
Industrial conglomerate Thyssenkrupp is still in the red. Following disappointing results in the second quarter, the company has to adjust its forecasts yet again. Nonetheless, there are glimmers of hope in the recent period.
The economic downturn continues to hurt Thyssenkrupp, leading to another quarter of losses. The company attributes this mainly to write-downs on fixed assets within the materials trading division and negative market valuation effects in the steel division.
Thyssenkrupp has revised its annual projections for both sales and net income, but remains committed to growth in its core operations. In a challenging environment, the company claims to have had "solid business development."
For the January to March period, Thyssenkrupp posted a loss of 78 million euros, compared to minus 223 million euros in the same period last year. Adjusted for one-off items, earnings before interest and tax (EBIT) stood at 184 million euros, down from 205 million euros in the previous year's Q2. The main contributor to the decline was the absence of positive one-off effects from the automotive supplier division. Without these effects, adjusted EBIT would have improved. Increases in earnings from the steel and marine businesses, along with Apex efficiency measures, also positively impacted the figures.
The cyclical slide in prices and demand in materials trading and the steel business led to lower sales (10.1 to 9.1 billion euros) and order intake (10.2 to 8.6 billion euros) compared to the previous year's Q2.
Downward revisions
Thyssenkrupp has downgraded its outlook for sales and annual earnings for the full year 2023/24. Reduced volumes and prices in the steel and materials trading sectors now predict sales lower than the previous year. The Group had previously hoped to match sales from the prior year. The anticipated net income is now a loss in the low triple-digit million euro range, while the Group had initially expected break-even figures. The Group still anticipates a rise in adjusted EBIT to a figure in the high three-digit million euro range, following 703 million euros in the previous year.
Regarding the second quarter, CEO Miguel López stated, "Thyssenkrupp performed as planned despite a worsening market environment." He mentions significant progress in the Group's strategic restructuring and refers to the acquisition of a 20 percent stake in the steel business by EP Corporate Group and forthcoming realignment plans for the steel division.
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Thyssenkrupp has revised its quarterly figures due to disappointing results in the second quarter, leading to another downward adjustment of its financial projections. Despite the challenges, ThyssenKrupp's CEO Miguel López mentioned promising progress in the company's strategic restructuring, including a 20% stake acquisition in the steel business by EP Corporate Group.
Source: www.ntv.de
