Restructuring and decline in sales at Thyssenkrupp

Anzeige 12/05/2024 Companies and individuals | Other topics | Created by SP

At € 35.0 billion, the steel manufacturer's sales in financial year 2023/2024 were seven percent down on the previous year due to the challenging market environment. Thyssenkrupp expands its APEX performance program and initiates restructuring measures in further areas

Thyssenkrupp Quarter in Essen — Thyssenkrupp quarter in Essen. Despite declining sales, the company will generate a net profit of between 100 and 500 million euros in the current financial year. "Despite the challenging market conditions, we achieved a respectable result in the past financial year," says CEO Miguel López (Image: Thyssenkrupp)

According to CEO Miguel López, thyssenkrupp achieved a "respectable result" in the past financial year (September 30) and is continuing its transformation course. Significantly weaker demand from key customer industries such as the automotive industry, mechanical and plant engineering and the construction industry led to a decline in order intake, which amounted to €32.8 billion in the 2023/2024 financial year (previous year: €37.1 billion). While Marine Systems was able to significantly increase its order intake thanks to extensive order expansions of two existing orders in the underwater sector and larger order intakes in the marine electronics sector, Steel Europe, Materials Services and Automotive Technology recorded declines. Decarbon Technologies also recorded a significant decline.

Decline in sales

The Group's salesdeclined and amounted to €35.0 billion (previous year: €37.5 billion). This was mainly due to lower demand and lower price levels at Materials Services and Steel Europe. Automotive Technology also recorded a downturn in the construction machinery business and in automotive plant engineering as well as in parts of the automotive series production business. By contrast, Decarbon Technologies achieved a significant year-on-year increase in sales due to high order intake from the previous period, ongoing major projects at Uhde and growth in the water electrolysis business. The delivery of a submarine and project progress in the new construction business also led to an increase in sales at Marine Systems.

Earnings forecast met

Positive effects from the APEX efficiency enhancement program supported earnings in all segments and mitigated most of the negative market effects. Thyssenkrupp thus achieved its earnings forecast of more than € 500 million, which was last adjusted in July 2024 to reflect the persistently weak macroeconomic environment.

High net loss for the year

thyssenkrupp reported a net lossof €1.4 billion for the past financial year (previous year: net loss of €2.0 billion). This was due to investments in transformation measures and impairments. Further charges of around € 270 million resulted from the necessary restructuring measures, particularly in Automotive Technology, Decarbon Technologies and Materials Services.

Forecast 2024/2025

The ongoing macroeconomic challenges also characterize the outlookfor the current fiscal year. Overall, thyssenkrupp anticipates an increase in sales of between 0 and 3 percent. Increases in Automotive Technology, Materials Services and Steel Europe in particular will contribute to this

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