Thyssenkrupp: Sales fall despite profits – hope for improvement remains!

Thyssenkrupp: Sales fall despite profits – hope for improvement remains!

In a challenging economic environment, ThyssenKrupp suffered a significant decline in sales in the second quarter. Loud finance.net Compared to the previous year, sales fell by almost 500 million euros to almost 8.6 billion euros. Despite these figures, the company reported a narrow profit of 155 million euros, a significant improvement compared to the loss of 78 million euros the previous year.

However, the adjusted operating result (EBIT) fell sharply to just 19 million euros, compared to 184 million euros in the previous year. The materials trade and the auto parts division were particularly affected, each losing half of their profits. The steel business also suffered losses, while a positive development was observed with an after-tax profit of around 270 million euros from the sale of ThyssenKrupp Electrical Steel India.

Sales and order development

ThyssenKrupp is concerned about a significant decline in incoming orders, which fell by 6 percent to 8.1 billion euros. Overall, sales for 2024/25 are confirmed compared to the previous year, with the hope of a more stable market environment in the second half of the year. The forecast calls for an adjusted EBIT of between 600 million and 1 billion euros and a profit after taxes of between 100 and 500 million euros.

In broader context, it becomes clear that ThyssenKrupp is also struggling to return to profitability. The share price has fallen by 47 percent since the beginning of the year and is now just over three euros. At the end of September, the company reported a loss of 1.4 billion euros, after a loss of 2 billion euros in the previous year, which was reinforced by impairments in the steel division and write-downs in steel trading and automotive, such as the press reported.

Strategy and outlook

In order to improve its financial situation, ThyssenKrupp plans to be back in the black in the coming financial year, with a targeted consolidated result of 100 to 500 million euros. CEO Miguel López describes the current financial year as a year of transition and is aiming for an adjusted EBIT margin of four to six percent, whereas in the previous year it was only 1.6 percent. There are also plans for a spin-off of the marine division and discussions are underway with the German government about state participation in the company.

Overall, it remains to be seen what effect the various measures will have and whether ThyssenKrupp will be able to successfully assert itself in an intensely competitive market.