By Nina Kienle
Shares in Thyssenkrupp plunged on Thursday after the German steel and industrial company posted second-quarter results that substantially missed expectations.
In European morning trading, shares fell 9.5% to 8.54 euros.
Thyssenkrupp's closely-watched adjusted earnings before interest and taxes came to 19 million euros ($21.2 million), dropping 90%. The figure also missed analysts' estimated 146 million euros, according to a company-compiled consensus.
The company said that weak markets and high macroeconomic uncertainty weighed on its performance in the quarter, as expected.
Sales for the period fell 5% to 8.58 billion euros, while orders contracted 6% to 8.08 billion euros, declining at all business units, excluding Marine Systems, it said.
The company said management worked intensively on programs to improve productivity and reduce costs. "However, this might still not be enough to fully counterbalance, especially the impact of the ongoing sluggish material markets," Baader Helvea analyst Christian Obst said in a note to clients.
The company backed its outlook for the fiscal year, but notes that it assumes the market environment ahead will remain challenging. Conditions should improve in the second half of the year, it said.
Baader Helvea's Obst said that it looks challenging for the company to reach even the low end of the given guidance range.
Net profit amounted to 155 million euros compared with a 78 million euro net loss the prior year's period.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
May 15, 2025 04:04 ET (08:04 GMT)
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