Thyssenkrupp: annual targets lowered, share price falls

(CercleFinance.com) - Thyssenkrupp lowered its guidance for the 2023/2024 financial year on Thursday evening, explaining that it does not foresee any stabilization of its market environment, which it currently deems 'difficult'.


The German conglomerate - whose activities range from steelmaking to shipbuilding to the supply of materials for factories - stresses that the efficiency measures it has implemented should make it possible to offset these difficulties in part, but not in their entirety.

As a result, the Group is now only expecting adjusted operating profit (Ebit) of less than 500 million euros for the year, whereas it was previously forecasting an annual profit of between 500 million and one billion euros.

Sales are expected to fall by 6% to 8% over the full year, rather than simply being 'below' the previous year's figure.

Finally, thyssenkrupp has stated that it expects free cash flow (FCF) to be negative at around 100 million euros excluding mergers and acquisitions, rather than positive at between 0 and 500 million euros as originally forecast.

Detailed results for the third quarter of its 2023/2024 fiscal year will be published on August 14.

The German conglomerate's share price fell by almost 7% on the Frankfurt Stock Exchange following this warning, making it one of the biggest decliners on the pan-European STOXX 600 index.

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