A general view of the gateway to the Thyssenkrupp industrial park in Duisburg, Germany, on August 29, 2024. (Photo by Ying Tang/NurPhoto via Getty Images)
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Germany stocks ThyssenKrupp The company's shares jumped on Tuesday after the company reported a limited net loss and a 1 billion euro ($1.06 billion) impairment on the company's struggling steel division.
The Frankfurt-listed company's shares rose 7.5% at 8:48 am London time.
Thyssenkrupp reported adjusted earnings before interest and tax of 151 million euros in the fourth quarter, beating visual alpha's forecast of 120 million euros, according to Reuters. Over the full fiscal year ending September 30, it narrowed its net loss to 1.5 billion euros after deducting minority interests, compared to a net loss of 2 billion euros in the previous year.
It said the loss for the past financial year was mainly due to impairment of assets totaling around €1.2 billion, of which €1 billion was borne by the Steel Europe division.
“Regarding our key strategic issues, the current financial year will be a year of decisions – especially for Steel Europe and Marine Systems,” CEO Miguel Lopez said in a company statement on Tuesday.
“In parallel, we seek to continue improving the performance of all our businesses and make better use of the opportunities offered by the green transition.”
Thyssenkrupp, which makes submarines and auto parts alongside its steel production, is currently in the process of restructuring Steel Europe into an independent company. Over the summer, the company completed the sale of a 20% stake in the unit to EP Corporate Group (EPCG), the investment vehicle owned by Czech billionaire Daniil Krentisky. The two companies are currently in talks to form a 50:50 joint venture.
The struggling German industrial company is also looking to offload its marine systems business and is still negotiating with the German government over state participation.
Germany has suffered political and economic problems in recent months, with business activity falling to its lowest level in seven months in September, and the ruling coalition collapsing earlier this month.
“When it comes to recovery, Germany continues to lag behind its European neighbours,” Thyssenkrupp said in its annual statement published on Tuesday. “As an export country, Germany continues to suffer from weak global demand for industrial goods. Moreover, weak domestic demand highlights the current investment crisis and weak consumer spending.”
