German industrial group Thyssenkrupp has turned more pessimistic about the current financial year, citing falling demand and lower prices across key markets.
"We are very much feeling the weak market environment in key customer industries such as the automotive, engineering and construction industries," chief executive Miguel López said as the company reported results for its third fiscal quarter.
A bright spot was Thyssenkrupp Marine Systems (TKMS), which is set to be spun off and posted higher orders and revenue. However, that was not enough to offset weaker performance in other divisions.
For the 2024-25 fiscal year, which ends in September, Thyssenkrupp now expects sales to decline by 5% to 7%. It had previously forecast flat revenue or a drop of up to 3%.
Third-quarter order intake rose by just over 20% to €10.1 billion ($11.8 billion), driven by TKMS. The naval shipbuilder - which produces submarines, frigates and corvettes - benefited from strong global defence spending and contributed €3 billion, the largest share among divisions. Other units all saw lower order volumes.
Group revenue fell 9% to €8.2 billion in the quarter. TKMS was again the only division to post growth. Thyssenkrupp plans to spin off the unit and list it on the stock exchange later this year.
The company's net loss widened to €278 million, from a €54 million loss a year earlier.
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