German industrial giant Thyssenkrupp reported Tuesday a massive annual loss for the second year running, as it battles challenges including a crisis in its historic steel division.
The conglomerate, whose products range from steel to submarines, booked a loss of 1.5 billion euros ($1.6 billion) for the 2023-24 financial year, after a loss of over two billion euros the previous year.
Once a symbol of German industrial might, Thyssenkrupp has suffered as high manufacturing costs at home, falling prices for its products and fierce competition from Asian rivals hammered its traditional steel business.
Chief executive Miguel Lopez said “very challenging market conditions” had weighed on the Essen-based group but insisted that it had made “key progress” in pushing through a major restructuring.
The group, which runs its financial year from October to September, is predicting a return to profit in the next fiscal year of 100 million to 500 million euros.
Several key units — including steel, automotive, and materials — saw falling orders and sales in 2023/24, with Thyssenkrupp pointing to “significantly weaker demand” from major industries.
Total sales for the year fell seven percent to 35 billion euros.
The troubled steel division, Steel Europe, reported an 18 percent fall in operating profits.
The group has been seeking to spin off the unit but the process is proving difficult.
Earlier this year, it completed a key step by selling a stake to a group owned by Czech billionaire Daniel Kretinsky.
But the crisis at the division deepened in August when its boss and the head of its supervisory board quit afer clashing with Lopez about the best way forward.
Thyssenkrupp has previously said it plans to cut jobs and reduce production at its key steel plant in Duisburg, though the exact number of losses has not yet been announced.