FRANFURT, Germany (AFP/APP): German industrial conglomerate Thyssenkrupp reported a first-quarter loss on Wednesday, once again weighed down by its troubled steel unit. Between October and December, the steel-to-submarines group swung to a net loss of 314 million euros ($336 million), compared with a profit of 75 million euros a year earlier.
Thyssenkrupp, which runs its business year from October to September, partly blamed a 200-million-euro impairment related to “the higher cost of capital… especially at Steel Europe”.
Group sales fell by nearly nine percent to 8.2 billion euros over the quarter, while order intake also declined year-on-year.
Lower prices and weaker demand weighed especially heavily on the steel unit, which has long been Thyssenkrupp’s problem child.
Once a symbol of German industrial might, Thyssenkrupp has suffered in recent years as falling prices, high energy costs and competition from Asian rivals hammered its traditional steel business.
It is trying to shift to climate-neutral production — without burning fossil fuels — but this needs huge investments. The group has embarked on a major restructuring to try to turn the tide and is in talks with Czech billionaire Daniel Kretinsky about a potential joint-venture in the steel business.
“We are conducting constructive negotiations, but we have not yet achieved any results”, CEO Miguel Lopez told reporters.
Thyssenkrupp is also considering selling all or part of its marine systems unit. Here too, “nothing has yet been decided.” Lopez said.
