German steel giant Thyssenkrupp on Wednesday lowered its outlook for 2023/24, now expecting to break even instead of the previously projected net profit in the low to mid three-digit million euro range.
In the first quarter (Q1), Thyssenkrupp recorded a net loss of 314 million euros (336 million U.S. dollars) due to impairment losses, primarily attributed to higher capital costs. This is a significant downturn compared to the same period last year, when the company posted a profit of 75 million euros.
Sales fell by nearly 9 percent to 8.2 billion euros. The company cited lower price levels in the steel and materials sectors, along with declining sales of work and raw materials, as key factors negatively impacting its performance.
Thyssenkrupp highlighted the steel industry's challenging environment, noting that a weak economy, renewed increases in raw material and energy costs, and strong competition from non-European market players are putting European steel producers under pressure.
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German steel giant Thyssenkrupp lowers outlook after Q1 loss
cgtn.com
