The German industrial group Thyssenkrupp recorded losses of 1,400 million euros at the end of its fiscal year, which means reducing by 30% the ‘red numbers’ of around 2,000 million euros from the previous year, as reported today by the German company. .
“The negative result reflects the extensive transformation measures and is mainly due to asset impairments for a total of about 1.2 billion euros,” the multinational explained in a statement. They mainly refer to the adverse impact of its steel business in Europe.
The steel part of the group, Steel Europe, as well as Material Services and Automotive Technology, explain up to 1 billion of this adverse impact. According to the company, some €270 million of the losses were due to the restructuring measures that were necessary in Automotive Technology, Decarbon Technologies and Material Services, in particular.
For its part, throughout the year the German company recorded orders for an amount of 32.8 billion euros, 11.6% below the previous year’s figure, while turnover decreased by 6.7%, to 35,000 million.
The company was hurt by significantly weaker demand in key industries, such as automotive, engineering and construction, which had a negative impact on the group’s main financial indicators and was evident by the decline in order intake. .
«Despite difficult market conditions, we achieved a respectable result in the last fiscal year, “We continue to implement the transformation of the Thyssenkrupp group with great determination and achieved key advances,” summarized Miguel López, CEO of the company.
Optimism in company management
Thus, given the current macroeconomic challenges, Thyssenkrupp estimates that in the current fiscal year it will be able to increase its sales between 0% and 3%, while it expects an adjusted Ebit of between 600 and 1,000 million euros, compared to the 567 million from the last year.
Furthermore, the group expects free cash flow before M&A to be between -400 and -200 million euros, including around 250 million euros in cash outflows from restructuring and higher investments compared to the previous year. .
Regarding the net result, the company expects a return to the ‘black numbers’ (positive) with an improvement to a range of between 100 and 500 million euros. “The current fiscal year is a transition year on our path to achieving our medium-term financial objectives, even in a challenging environment,” said Miguel López.
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