ThyssenKrupp Stock Down On Q2 Loss, Weak Orders And Outlook

Shares of ThyssenKrupp AG were losing around 2 percent in the morning trading in Germany after the industrial engineering and steel company reported Thursday a loss in its second quarter, compared to profit year’s profit, amid weak sales and orders. Looking ahead for fiscal 2023, the company continues to project lower earnings in a challenging environment with persistently high energy prices and high inflation.

Looking ahead for fiscal 2023, the company continues to expect net income to decrease but at least break even, and adjusted EBIT to be a figure in the mid to high three-digit million euro range, compared to last year’s 2.1 billion euros.

In the second quarter, net loss attributable to shareholders was 223 million euros, compared to last year’s profit of 565 million euros. Loss per share came to 0.36 euro, compared to prior year’s profit of 0.91 euro.

The net loss reflects impairment losses of just under 350 million euros at Steel Europe.

The adjusted EBIT was 205 million euros, below the prior-year level of 802 million euros, hurt by significantly higher raw material and energy costs at Steel Europe and lower prices and the corresponding reduction in margins at Materials Services.

The impact was only partly offset by earnings improvements at Automotive Technology, Marine Systems and Multi Tracks, which made a positive earnings contribution for the first time.

Group sales declined 5 percent to 10.11 billion euros from prior year’s 10.60 billion euros.

Order intake totaled 10.19 billion euros, 25 percent lower than 13.6 billion euros a year earlier.

Materials Services saw weak order intake and sales, while Industrial Components increased order intake and sales by 3 percent and 4 percent, respectively. Forged Technologies increased order intake and sales.

Automotive Technology also improved both order intake and sales by 21 percent to 1.4 billion euros.

Steel Europe increased order intake by 9 percent due to significantly higher order volumes, while sales were 2 percent below the prior year despite the slight increase in shipment volumes.

In Germany, ThyssenKrupp shares were trading at 6.51 euros, down 2.22 percent.

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