German industrial conglomerate Thyssenkrupp blamed a "gloomy" economic environment as it lowered its forecast for annual sales and earnings on Wednesday.
Thyssenkrupp said it now expects sales for the 2023-24 fiscal year to be below the prior-year level, due largely to declining volumes and lower prices in the steel and materials trading business.
The steel and engineering company also now projects a net loss for the year in the low three-digit million euro range. The company had previously assumed a break-even figure.
In terms of adjusted earnings before interest and taxes (EBIT), Thyssenkrupp anticipates an increase the high three-digit million euro range after €703 million ($761 million) in the previous year.
In terms of the second quarter, ThyssenKrupp reported a narrower net loss, but with a decline in sales as well as order intake. The loss, after deducting non-controlling interest, totalled €78 million, narrower than last year's €223 million.
Adjusted EBIT for the quarter was €184 million, lower than €205 million last year.
"Thyssenkrupp performed as planned in the second quarter – despite a still gloomy market environment. We made significant progress in the strategic realignment of the group, especially in the steel business," said chief executive Miguel López in a statement.