The German industrial group ThyssenKrupp started the year in the red, the company said on Wednesday.
The company announced that renewed impairments on the steel business due to higher interest rates and the associated higher cost of capital were partly responsible.
ThyssenKrupp reported a net loss of €314 million ($337 million), following a profit of €75 million in the previous year. Depreciation and amortization amounted to around €200 million.
Falling prices and lower demand in the steel business, particularly from automotive customers, caused earnings before interest and taxes (EBIT) adjusted for special effects to fall by half to €84 million.
The first positive effects of the "Apex" efficiency programme were also reported. It is expected to contribute up to €2 billion to adjusted EBIT by 2024-25 and mitigate "opposing market effects".
Turnover also fell due to the drop in demand and lower price levels - by 10% to just under €8.2 billion, which was below the expectations of market analysts. Incoming orders were down by 13%.
ThyssenKrupp was more pessimistic for the 2023-24 financial year, both in terms of sales and annual earnings. Sales are now expected to be at around the previous year's level, after the company had previously assumed slight growth.
The bottom line is likely to be a break-even result due to depreciation and amortization in the first quarter. ThyssenKrupp recently said it was expecting a profit in the low to middle triple digit millions.
In the previous year, ThyssenKrupp had recorded a €1.1 billion loss due to charges in the steel business. However, the forecast for adjusted EBIT was maintained.
