Germany's thyssenkrupp group has adjusted its outlook for the current fiscal year, which ends 30 September 2024, lowering its revenue expectations. While it previously predicted revenue on par with the previous fiscal year, it now expects figures to be lower.
The main causes for this downward revision are lower volumes and lower selling prices in the group's two steel divisions, producer thyssenkrupp Steel Europe and distributor thyssenkrupp Materials Services.
The company continues to anticipate a triple-digit rise in adjusted EBIT compared to the previous year's €703 million, and expects free cash flow before mergers and acquisitions in the triple-digit million euro range, up from the previous year's €363 million. However, mainly due to interest-rate-induced impairments in Q1 FY 2023/2024, thyssenkrupp now expects net income to break even, revising down its previous guidance of a positive single-digit increase in the triple-digit range.
The lower sales expectations for the steel units have weighed on thyssenkrupp's overall earnings guidance for the fiscal year. The company's management is working to address the challenges faced by its steel divisions and maintain profitability through cost reductions and efficiency measures across the group.
