On August 29, 2024, panoramic view of the gate of ThyssenKrupp Industrial Zone in Duisburg, Germany.
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Germany’s Thyssenkrupp on Tuesday reported a 1 billion euro ($1.06 billion) impairment hit on its troubled steel unit, with the industrial giant citing “bleak production” expectations and structural challenges in the industry.
After excluding minority interests, the company narrowed its net loss to 1.5 billion euros in the year ended September 30, compared with a net loss of 2 billion euros the previous year. The company said the loss in the last financial year was mainly due to asset impairments totaling about 1.2 billion euros, of which 1 billion euros was borne by its European steel division.
Shares in Frankfurt-listed ThyssenKrupp rose 2.6% as of 08:16 a.m. London time.
“This fiscal year will be a year of decisions regarding our main strategic issues, especially for European Steel and Marine Systems,” Chief Executive Miguel Lopez said in the company’s statement on Tuesday expressed in.
“At the same time, we are looking to further improve performance across all businesses and better exploit the opportunities presented by the green transition.”
Thyssenkrupp, which makes submarines and car parts alongside its steel production, is reorganizing European Steel into an independent company. This summer, the company completed the sale of a 20% stake in the unit to EP Corporate Group (EPCG), an investment vehicle owned by Czech billionaire Daniel Krentisky. The two companies are currently in talks to form a 50:50 joint venture.
The troubled German industrial company is also exploring the possibility of selling its marine systems business and is still in talks with the German government over state involvement.
Germany has been gripped by political and economic woes in recent months, with business activity at a minimum. seven month low In September, the ruling coalition collapsed earlier this month.
“Germany continues to lag behind its European neighbors when it comes to recovery,” Thyssenkrupp said in its annual statement released on Tuesday. “As an exporter, Germany continues to be affected by weak global demand for industrial goods. In addition, domestic demand is weak. Highlighting the current investment crisis and weakness in consumer spending.”
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