Germany-based steelmaker Thyssenkrupp has announced its financial results for the financial year 2022-23 ended September 30.
The group has posted a net loss of €2 billion for the given year, compared to a net profit of €1.2 billion in the previous fiscal year, while its sales revenue amounted to €37.5 billion, down by 8.7 percent year on year. Meanwhile, Thyssenkrupp’s adjusted EBIT rose significantly to €703 million from €2.1 billion in the previous financial year.
In the given financial year, order intake at the company’s steel division in the given period increased from €11.8 billion to €12.2 billion amid an increase in demand from the automotive industry and the construction sector. Whereas shipment volumes saw stable development year on year, the decline in spot market prices resulted in slightly lower sales of €12.4 billion, down by six percent year on year. Adjusted EBIT of the steel division was reported at €320 million, compared to the record level of €1.2 billion. The high raw material and energy costs impacted earnings in the first half of the year especially.
In a challenging market environment shaped by geopolitical and trade conflicts, high inflation and rising interest rates, Thyssenkrupp expects macroeconomic development in the financial year 2023-24 to be difficult overall. Moreover, the company expects further price volatility for raw materials and energy. This may result in fluctuations in the development of sales and earnings. The company expects net income to increase to a positive figure in the low-to-mid three-digit million euro range in the financial year 2023-24.