Thyssenkrupp lowers full-year guidance again

15th May 2024 11:00

(Sharecast News) - German industrial conglomerate Thyssenkrupp has cut its forecasts for full-year sales and net profit as a result of volume reductions and lower steel prices, along with write-downs that will impact the bottom line.

This was the second reduction in guidance in just three months, sending shares in the company down 2.1% to €4.83 by 1205 in Frankfurt.

The industrial engineer and steel manufacturer said it now expects sales for the year ending 30 September 2024 to be below the prior-year level, compared with earlier guidance of a flat outcome.

It blamed a "persistently difficult market environment characterised by geopolitical and trade conflicts", along with further volatile price levels of sales and procurement markets for raw materials and energy.

Meanwhile, impairment losses in its Materials Services division and the negative effects from contracts to offset CO2 emissions in Steel Europe mean that net income will be "a negative figure in the low three-digit million euro range". This is better than the €1.99bn net loss recorded last year but worse than the previous guidance for "around breakeven".

The company reported on Wednesday that order intake and sales were both lower year-on-year in the second quarter ended 31 March, due to lower prices and demand at Materials Services and Steel Europe.

Sales fell to €9.1bn from €10.1bn the year before, while adjusted EBIT declined to €184m from €205m.