Economic situation - Thyssenkrupp yet more pessimistic
Industrial conglomerate Thyssenkrupp is becoming more pessimistic about the current business year. The challenging market environment, which is causing a significant revenue decline in the current business year, was stated in a communication from the company. A short-term market stabilization in the current business year is currently not foreseeable. The initiated efficiency improvement measures have successfully counteracted the negative market developments, but cannot fully compensate for them. Thyssenkrupp last reported in mid-May with the quarterly figures that they had lowered their expectations.
For the business year 2023/24, the company now expects a revenue decline of six to eight percent. Previously, Thyssenkrupp had anticipated a result below the previous year's value. The adjusted EBIT (Earnings Before Interest and Taxes) should reach a value above 500 million Euro. Previously, there was still the expectation of an EBIT in the high three-digit million Euro range.
In the third business quarter, the revenue, according to preliminary figures, was around 9 billion Euros, about 6 percent below the corresponding previous year's figure. Experts had expected nearly 300 million Euros more. The adjusted EBIT fell by more than a third to 150 million Euros.
The Economy of North Rhine-Westphalia, where ThyssenKrupp is based, might be impacted by the company's revenue decline during its current business year. Despite initiatives to improve efficiency, the challenging market conditions have resulted in significant revenue loss for Companies like ThyssenKrupp in the German Industry, particularly in the steel sector. The pessimistic outlook for the next business year, 2023/24, includes a projected revenue decline of six to eight percent for ThyssenKrupp.
