Thyssenkrupp posts $2.3 bln impairment on steel division (updated)
22/11/2023 06:09
(Adds details on results, CEO comment)
FRANKFURT, Nov 22 (Reuters) - Germany's Thyssenkrupp on
Wednesday unveiled a 2.1 billion euro ($2.3 billion) impairment
on its steel unit due to "gloomy" earnings expectations,
highlighting the challenge in efforts to win Czech energy group
EPH as a co-owner for the business.
As a result of the impairment, Thyssenkrupp TKAG.DE , which
has been trying to divest its steel division for several years,
posted a 2-billion-euro net loss for the fourth quarter.
Adjusted operating profit in the July-September quarter fell
45% to 88 million euros.
"The figures show that we have made progress with the
transformation of Thyssenkrupp, despite the difficult
environment, but also that we must continue to work hard at
raising the performance of our businesses," Thyssenkrupp CEO
Miguel Lopez said.
Thyssenkrupp last month flagged a marked deterioration in
the steel market, adding optimistic assumptions had been
dampened by a mix of economic weakness in Germany and other
markets as well as higher raw materials and energy costs.
Cheap Chinese steel imports into Europe have been an
additional headache, along with the fact that Asian rivals do
not have to bear the costs of CO2 emissions, which puts local
players at a disadvantage.
($1 = 0.9168 euros)
(Reporting by Christoph Steitz; Editing by Sandra Maler and
Miranda Murray)
((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))