Thyssenkrupp Faces Steel Challenge: Germany’s Thyssenkrupp (TKAG.DE) disclosed a 2.1-billion-euro ($2.3 billion) impairment on its steel unit, citing a “gloomy” outlook that poses a challenge in its pursuit of Czech energy group EPH as a co-owner for the business.
Despite the setback, shares in the industrial conglomerate surged 5%, claiming the top spot on Frankfurt’s midcap index. The positive momentum follows the company’s first positive free cash flow before mergers and acquisitions in seven years. However, the impairment resulted in Thyssenkrupp posting a 2-billion-euro net loss for the fourth quarter, with adjusted operating profit falling 45% to 88 million euros.
CEO Miguel Lopez acknowledged the figures as a sign of progress in the transformation of Thyssenkrupp. The APEX program, aimed at enhancing performance, takes center stage in the company’s strategy. The proposed stable dividend of 0.15 euros apiece reflects a commitment to shareholders. Thyssenkrupp reported free cash flow before M&A at 363 million euros.
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Thyssenkrupp, known for its diverse portfolio including steel, submarines, car parts, and materials trading, is engaged in constructive talks with EPH regarding a potential steel joint venture. EPH, led by Czech billionaire Daniel Kretinsky, brings energy expertise to the table in support of Thyssenkrupp Steel Europe.
The company had previously signaled a challenging steel market, citing economic weaknesses in Germany and other markets, coupled with increased raw materials and energy costs. Additionally, cheap Chinese steel imports and the absence of CO2 emission costs for Asian rivals have added to the complexities faced by Thyssenkrupp.
In navigating this landscape, Thyssenkrupp remains resilient, with CEO Miguel Lopez emphasizing the transformative journey underway. The article unpacks the intricacies of market pressures, the impact on Q4 figures, and the ongoing narrative of Thyssenkrupp’s strategic evolution.
Our Reader’s Queries
Who owns Thyssenkrupp Steel Europe AG?
The ThyssenKrupp Headquarters in Essen is owned by the Alfried Krupp von Bohlen und Halbach Foundation (20.9%), Cevian Capital (13.7%), and others (65.4%). With a workforce of 103,598 employees in 2020, ThyssenKrupp has several subsidiaries and can be found at www.thyssenkrupp.com.
What is Thyssenkrupp German steel?
As a top-tier provider of premium flat steel, thyssenkrupp Steel is renowned for its cutting-edge steel innovations and top-notch products that cater to even the most demanding applications. With a workforce of over 26,000, the company produces a staggering 11 million tonnes of crude steel annually, cementing its position as Germany’s largest manufacturer of flat steel.
Who is the new CEO of Thyssenkrupp?
Effective June 1, 2023, Miguel Ángel López Borrego will take on the role of CEO at thyssenkrupp AG.