Thyssenkrupp books $1 billion impairment on struggling steel unit

by Pelican Press
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Thyssenkrupp books $1 billion impairment on struggling steel unit

A general view of the gate of the Thyssenkrupp industrial area in Duisburg, Germany, on August 29, 2024. (Photo by Ying Tang/NurPhoto via Getty Images).

Nurphoto | Nurphoto | Getty Images

Germany’s Thyssenkrupp on Tuesday reported a 1-billion-euro ($1.06 billion) impairment on its struggling steel division as the industrial powerhouse flagged “gloomy volume” expectations and structural challenges in the sector.

The firm said its net loss of 1.5 billion euros in the fiscal year ending Sept. 30 — after deducting minority interest — was mainly due to asset impairments totaling around 1.2 billion euros, of which 1 billion euros were undertaken by its Steel Europe division.

“In respect of our main strategic issues, the current fiscal year will be a year of decisions – especially for Steel Europe and Marine Systems,” CEO Miguel Lopez said in the firm’s Tuesday statement.

“In parallel, we are seeking to further improve the performance of all our businesses and better leverage the opportunities presented by the green transformation.”

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