CEO Miguel López says the firm performed “as planned” in the second quarter, although the market remains “gloomy”.
German conglomerate Thyssenkrupp, which specialises in industrial engineering and steel production, reported downbeat financial results on Wednesday.
For the second time in three months, the firm cut its annual forecasts for sales and net profit, citing lower demand and prices at its Materials Services and Steel Europe divisions.
Thyssenkrupp now expects net income to be a negative figure in the low three-digit million euro range, a downgrade from its previous forecast, which suggested it would break-even.
The firm added that “geopolitical and trade conflicts” were contributing to the “difficult market environment”.
Order intake and sales this quarter both fell sharply, with intake dropping to €8.6 billion and sales to €9.1 billion.
This is down from €10.2 billion and €10.1 billion, respectively, a year earlier.
Adjusted EBIT, earnings before interest and taxes, also decreased to €184 million from €205 million in the prior year.
This was largely due to the absence of one-time gains in the automotive technology division. Excluding these one-off effects, adjusted EBIT saw a slight improvement.
Despite lacklustre sales, Miguel López nonetheless said that Thyssenkrupp had made “significant progress” in restructuring, notably regarding its steel business.
“We signed an agreement with EP Corporate Group that it would acquire a stake in the steel business and Steel Europe is currently developing a concept for the segment’s realignment. Our materials business is also undergoing an extensive transformation process,” he said.
Thyssenkrupp’s share price was down almost 6% at 10h45 CET in daily trading.
