Thyssenkrupp: Lower operating profit in Q1 with lower steel prices


FRANKFURT (Reuters) – Thyssenkrupp said on Tuesday its operating profit fell 33% in the first quarter, pointing to falling prices for materials, including steel, in the wake of a weakening Mondial economy.

The adjusted profit before interest and tax (Ebit) of the German industrial conglomerate stood at 254 million euros in the October-December period, while turnover remained stable at 9.02 billion euros.

“Visibility is limited regarding future economic developments,” Chief Financial Officer Klaus Keysberg said in a statement, calling first-quarter results robust despite an environment that remains uncertain.

Fears of a cooling global economy following the war in Ukraine have driven steel prices down from the high levels reached in 2022, affecting Thyssenkrupp’s materials trading division .

The group’s steel business, the second largest in Europe after ArcelorMittal, was less affected due to long-term contracts that lock in prices and only reflect declines with a lag of several quarters.

(Report Christoph Steitz, French version Augustin Turpin, edited by Kate Entringer)

Copyright © 2023 Thomson Reuters



Source link -84