German steelmaker thyssenkrupp has announced its financial results for the fiscal year 2018-19 ended September 30, 2019.
The group posted a net loss of €304 million ($336.8 million) in the given period, compared to a net loss of €62 million in the previous fiscal year due to the increase in the provision for risks from antitrust proceedings and restructuring expenses in the second quarter, while its sales revenue increased by 1.1 percent to €42 billion ($46.5 billion) compared to €41.5 billion in the previous fiscal year.
As for the fiscal year 2019-20, thyssenkrupp said it is cautious about the period in question, due to economic and geopolitical uncertainties around the world, while foreseeing a higher net loss due to restructuring expenses in the FY 2019-20.
The executive board and supervisory board of thyssenkrupp will propose not to pay dividends for the fiscal year 2018-19 at its annual general meeting on January 31, 2020, on the back of the weak operational and financial performance.
The company also said that its steel division’s performance was affected by several factors, like the historic low tide of the Rhine which caused the shipments to decrease, and the temporary production cuts in the automotive sector. Another factor that affected the company’s steel division negatively was the slowdown in market momentum driven by a sharp decrease in demand from the automotive sector. The order intakes and sales of the steel division were also down in FY 2018-19, according to the company.
The German group’s steel division has posted an adjusted EBIT of €31 million ($34.3 million) as compared to €687 million in the previous fiscal year. The steel division’s performance was also affected by higher raw material costs, especially for iron ore, and the negative exchange rate.