ThyssenKrupp’s Steel Business Will Face Loss Pressure
Reuters, Frankfurt, August 13, Germany’s ThyssenKrupp Group said on Thursday that the company’s steel division is expected to face operating losses of 1 billion euros ($1.2 billion) this year. It must accelerate the integration process or sell the department.
ThyssenKrupp shares fell 16.2% after the news. Although the German company just sold its elevator business for 17.2 billion euros recently, analysts generally believe that the company’s performance prospects are not optimistic.
As the second largest steel company in Europe after ArcelorMittal, Thyssenkrupp Steel Europe’s expected loss will be mainly caused by the following factors: low-priced imported competing products, raw material prices High and weak local car demand in the EU.
Response of ThyssenKrupp
“There is currently no (EU) steel company making a profit. But in terms of performance, we are currently behind in the competition,” the company’s chief financial officer Klaus Keysberg said in a telephone interview, adding that the company is negotiations on further layoffs.
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