Thyssenkrupp writes red numbers
The crisis-ridden industrial conglomerate Thyssenkrupp does not see any improvement in its situation in the coming months. For the full year, the company now expects a loss in the three-digit billion range. In the quarter just ended, it already reported a loss of 54 million euros.
The struggling industrial conglomerate Thyssenkrupp has slipped into the red. In the third quarter of its fiscal year, it reported a loss of 54 million euros, after a surplus of 83 million euros in the same period last year. The steel division, facing an uncertain future, suffered a nearly 50% drop in its operating result due to low material prices, among other factors. This was exacerbated by an unexpected special charge of around 80 million euros for additional costs from legacy projects in the cement sector.
Thyssenkrupp had already revised its forecast for the third quarter of the 2023/24 fiscal year (as of September 30) at the end of July. Now, the company has also adjusted its net forecast: it expects a loss in the mid- to high three-digit million-euro range. After nine months, the loss has already amounted to 446 million euros.
"A short-term stabilization of the market in the current fiscal year is not foreseeable," the company stated. The planned steps to increase efficiency under the APEX performance program are not sufficient to offset the losses. The company is struggling with weak demand from key customers in the automotive, machinery and plant engineering, and construction industries, as well as persistently high energy costs.
The operating result (adjusted EBIT) shrank to 149 million euros from 243 million euros in the previous quarter. Revenue decreased by six percent to just under nine billion euros. The company currently employs 97,860 people.
Despite the company's efforts to improve efficiency under the APEX performance program, the challenging market conditions persist. Other key industries, such as automotive and construction, continue to contribute to Thyssenkrupp's weak demand, leading to an 'Other' area of concern beyond the steel division.
In addressing these issues, Thyssenkrupp is exploring various strategic options, including potential partnerships or divestments, to improve its financial position and ensure long-term sustainability.
