German industrial
conglomerate Thyssenkrupp on Wednesday said it was tempering its expectations
for 2024, as its long-troubled steel unit weighed on results again.
Thyssenkrupp cut its net loss in the second quarter to 72
million euros ($78 million), from 203 million euros in the same period last
year.
But the group faced “a still gloomy market environment”,
Thyssenkrupp CEO Miguel Lopez said in a statement.
In steel, the “weak economy… as well as higher energy costs
compared with its international competitors” resulted in a “very challenging
environment”, the group said.
“Strong price declines and volume reductions” saw sales in steel
fall to 2.9 billion euros in the second quarter, down from 3.3 billion euros
over the same period last year.
The story was similar in its materials division, where sales for
the second quarter fell to 3.2 billion euros from 3.9 billion euros last year.
Thyssenkrupp said it now anticipated sales “below the prior-year
level”, having previously aimed to equal last year’s mark.
The Duisburg-based group also now expected to record a loss in
the “low three-digit million euro range”, having previously held hopes of
breaking even for the year.
The difficulties come as Thyssenkrupp looks to trim the range of
its business activities and its headcount.
The conglomerate is in the process of spinning off its
underperforming steel division and has agreed the sale of a stake to the EPCG
group owned by Czech billionaire Daniel Kretinsky.
Thyssenkrupp previously said said it would cut jobs and reduce
production at its key steel plant in Duisburg because of the difficult market
environment.
The group is also advancing the spin off of its marine business,
with the German group in talks with US fund Carlyle and the German federal
government about a possible investment.