Thyssenkrupp cuts sales, net profit outlook on weakening demand By Reuters
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© Reuters. FILE PHOTO: FILE PHOTO: Thyssenkrupp’s logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS/Michaela Rehle/File Photo/File Photo
FRANKFURT (Reuters) -Thyssenkrupp cut its annual sales and net profit forecasts on Wednesday, blaming softening demand and prices at its materials and steel divisions, in the latest sign of weakness in European industry.
The company now expects to break even on a net profit basis in its 2023/24 fiscal year, having previously forecast a low-to-mid triple digit million euro profit. Analysts on average expect net profit of 472 million euros ($506 million), according to LSEG data.
The company, which is trying to divest its steel and marine divisions, also cut its sales outlook, now expecting revenues to be at last year’s level of 37.5 billion euros after initially forecasting a slight increase.
Chief Executive Miguel Lopez said “ongoing weakness of the global economy and geopolitical conflicts” showed that the group’s ambitious APEX performance programme, which aims to lift adjusted operating profit by 2 billion euros, was necessary.
Thyssenkrupp (ETR:) confirmed its closely-watched outlook for free cash flow before mergers and acquisitions, a key gauge for the group’s ability to earn money, still expecting a low three-digit million euro sum.
($1 = 0.9337 euros)
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© Reuters. FILE PHOTO: FILE PHOTO: Thyssenkrupp’s logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS/Michaela Rehle/File Photo/File Photo
FRANKFURT (Reuters) -Thyssenkrupp cut its annual sales and net profit forecasts on Wednesday, blaming softening demand and prices at its materials and steel divisions, in the latest sign of weakness in European industry.
The company now expects to break even on a net profit basis in its 2023/24 fiscal year, having previously forecast a low-to-mid triple digit million euro profit. Analysts on average expect net profit of 472 million euros ($506 million), according to LSEG data.
The company, which is trying to divest its steel and marine divisions, also cut its sales outlook, now expecting revenues to be at last year’s level of 37.5 billion euros after initially forecasting a slight increase.
Chief Executive Miguel Lopez said “ongoing weakness of the global economy and geopolitical conflicts” showed that the group’s ambitious APEX performance programme, which aims to lift adjusted operating profit by 2 billion euros, was necessary.
Thyssenkrupp (ETR:) confirmed its closely-watched outlook for free cash flow before mergers and acquisitions, a key gauge for the group’s ability to earn money, still expecting a low three-digit million euro sum.
($1 = 0.9337 euros)
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