Germany’s Thyssenkrupp has cut its 2024/2025 profit and revenue guidance as the group posted 9% sales decline to €8.2bn ($9.5bn) in the third quarter (Q3) due to lower prices and demand.
The company now anticipates a full year sales decline between 7% and 5% compared to the previous forecast of 3% to 0%.
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In addition, Thyssenkrupp has narrowed its outlook for adjusted earnings before interest and taxes (EBIT), expecting it to be at the lower end of the previously communicated range of €600m to €1bn.
In the third quarter, the group reported a significant increase in order intake, which rose to €10.1bn despite the overall downturn in sales.
This surge was mainly driven by the company’s Marine Systems segment, which secured an order for two additional submarines as part of an extended contract with Singapore.
Additionally, the segment secured one of its largest-ever service orders for maintenance of six submarines belonging to the German Navy.
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By GlobalDataThyssenkrupp managed to keep its adjusted EBIT stable, with a slight increase to €155m from the previous year’s €149m. This improvement was largely due to significantly better earnings at Decarbon Technologies.
However, the company’s net loss widened to €255m in Q3, from a net loss of €33m in the same period last year.
The net loss was impacted by a one-time tax effect of approximately €135m related to preparations for the planned spin-off of Marine Systems.
Thyssenkrupp CEO Miguel López said: “The past quarter was characterised by enormous macroeconomic uncertainty. We are very much feeling the weak market environment in key customer industries such as the automotive, engineering and construction industries. Nevertheless, we have been able to counteract these effects with APEX and other rigorous cost-cutting measures and keep earnings stable.”
Recently, Thyssenkrupp’s shareholders approved the spin-off of the conglomerate’s marine business, TKMS, paving the way for it to become an independent entity in the maritime defence market with its own public listing.
“We are aiming for a stock market listing of our marine business before the end of this calendar year. With the new collective restructuring agreement, we are establishing the basis for a successful future for Steel Europe. In the other segments too, we are working purposefully on the new future target model,” Miguel López added.
