FRANKFURT (Reuters) – German conglomerate Thyssenkrupp cut its 2023/24 forecast for sales and net profit for the second time in three months, blaming lower demand and prices at its steel unit as well as impairments at its materials trading division.
The move underscores the challenging environment for conglomerates focused on capital goods, which need to tackle elevated inflation, raw materials price swings and cooling global demand for their products.
Thyssenkrupp, which makes steel, submarines and car parts, expects an annual net loss in the low triple-digit millions of euros, it said on Wednesday, having previously forecast break-even.
According to LSEG data, analysts on average expect a net profit of 203 million euros ($220 million) in the year to September.
Highlighting a “gloomy market environment”, CEO Miguel Lopez said the company had continued to make progress with its turnaround in the period, singling out steps to sell or spin off its steel and marine divisions.
Weakening demand led to impairments at Thyssenkrupp’s materials trading division, the company said, without specifying the amount.
($1 = 0.9245 euros)
(Reporting by Christoph Steitz; Editing by Mark Potter and Rachel More)
Read More: Thyssenkrupp cuts sales, net profit as market remains ‘gloomy’