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ThyssenKrupp cuts profit forecasts amid steel glut

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By Euronews  with Reuters
ThyssenKrupp cuts profit forecasts amid steel glut

The fall in materials prices – particularly steel – has forced Thyssenkrupp to cut its profit forecasts.

Amid what it called “extremely difficult conditions” in the materials market it now says full-year underlying earnings will at least 1.4 billion euros.

The previous forecast was 1.6 to 1.9 billion.

“While we are now seeing a recovery in material prices, it is coming later than we originally expected and from a lower level and will also be reflected in our figures with a time lag,” Chief Executive Heinrich Hiesinger said in a statement.

At the same time the German industrial group posted a 20 percent drop in adjusted operating profit for the quarter to the end of March.

Steel Europe made money but that was cancelled out by losses at the company’s Brazilian steel mill.

Pension cost revaluations also had a negative effect.