German producer Thyssenkrupp made a mixed financial update on Thursday, noting difficult market conditions and highlighting some areas of improvement.
The group posted a net loss of €33 million from October ’ to December ’ following a loss of €305 million in the same quarter of the previous year.
Meanwhile, the group's sales fell from 8.2 billion Euro’ last year to 7.8 billion Euro’ due to weak demand and low prices.
Jens Schulte, CFO ’ at Thyssenkrupp, said: "Despite the challenging market environment, we improved our performance in the first quarter.
Interest and pre-tax adjusted earnings (EBIT) rose significantly to €191 million in the first fiscal quarter ending December 31, ’, thanks to the firm's focus on cost efficiency.
The increase in “EBIT’ is proof that our structural measures, especially to increase efficiency and reduce costs, were initially successful, Schulte said. We will continue to systematically work on these measures in the future.”
Support from the marine project
Free cash flow before mergers and acquisitions also lost €21 million this quarter.
This was supported by prepayments for a recent total, large maritime project, compared with a loss of 531 million Euro’ from the previous year.
General order intake on an annual basis %More than 50’ increased to 12.5 billion Euro’ between October and December.
Thyssenkrupp expects a positive cash flow figure ranging from €0 to €300 million for the entire fiscal year 2024/2025.
Previously, a loss of between €200 million and €400 million was expected.
Restructuring continues
Miguel López, CEO of Thyssenkrupp’, added in the fiscal update that the manufacturer is continuing its restructuring efforts.
He added that the transformation was driven by “'s passion for strengthening the competitiveness of our businesses, ensuring sustainable growth and thus protecting employment in the long term.
Thyssenkrupp said it is continuing its plans to split its steel business in the European ’ and that the group is also planning to go public with its maritime unit.
Regarding the second part, which produces military ships and submarines, Thyssenkrupp said he was aware of the large orders accumulated.
Separating the unit while preserving the share could allow the manufacturer to benefit from increased military spending.
Due to geostrategic developments, the segment expects demand to continue to rise in the future, “ said in a statement Thursday.
“The sought-after independent solution will make it possible to make the most of this potential. For this purpose, the announced division of maritime systems is quickly followed.”
Predictions for next year
Sales at Thyssenkrupp’'s decarbonization technologies unit were significantly higher than in the previous year, and the firm added that this division, “muazzam”, has a growth potential.
Sales for the full fiscal year 2024/2025 %With a 0 %Compared to the previous growth forecast of 3 xpects it to decrease or remain stable until ’e.
Thyssenkrupp’ is expected to make an estimated profit of between €100 million and €500 million, while adjusted EBIT’ is estimated to be in the range of €600 million to €1 billion.
