🛠️ Hey amigos! It looks like German steel titan Thyssenkrupp is hitting some rough patches. In their latest announcement, they've lowered their outlook for 2023/24 after a tough first quarter.
Instead of the net profit they were expecting (in the low to mid three-digit million euro range), they're now just hoping to break even. Yikes! 😬
So, what happened? In Q1, Thyssenkrupp reported a net loss of 314 million euros (that's about 336 million US dollars). This loss was mainly due to higher capital costs. Just last year, they had a profit of 75 million euros during the same period. Talk about a plot twist!
Their sales also dipped by almost 9% to 8.2 billion euros. Lower price levels in their steel and materials businesses, along with dropping sales of work and raw materials, had a \"negative impact\" on their numbers.
The steel industry is facing a super challenging environment right now. Thyssenkrupp pointed out that the weak economy, rising raw material and energy costs, plus tough competition from non-European players, are putting Europe's steel producers under pressure.
Looks like the steel giants are in for a wild ride! 🎢 Stay tuned to see how Thyssenkrupp navigates these tricky times.
Reference(s):
German steel giant Thyssenkrupp lowers outlook after Q1 loss
cgtn.com
