Thyssenkrupp Writes Down Euro 1 Billion From Steel Business
The company hopes that Czech billionaire Daniel Kretinsky, who now owns 20% of TKSE, will increase his stake to 50%.
SEATTLE (Scrap Monster): Thyssenkrupp declared that it has deducted an additional Euro 1 billion from the value of its steel sector. The corporation attributed this to the deteriorating prospects of the steel industry and the growing competition from the Asian region. It is anticipated that the writedown will make selling a portion of its steel business easier.
Thyssenkrupp Steel Europe (TKSE) is currently worth 2.4 billion euros, which is less than half of what it was two years ago. It should be mentioned that the business has been having difficulties due to the weakening global economy, growing expenses, and increased competition from China. The business anticipates that Daniel Kretinsky, a Czech billionaire who currently owns 20% of TKSE, would raise his ownership to 50%.
In fiscal year 2023/2024, Thyssenkrupp's financial metrics suffered from sharply declining demand from important client sectors like engineering, construction, and the automotive sector. From €37.1 billion in the previous fiscal year to €32.8 billion in the fiscal year 2023/2024, the order intake has significantly decreased. Additionally, the muted market momentum led to a significant drop in sales.
In the most recent fiscal year, the corporation reported a net loss of €1.4 billion, down from a net loss of €2.0 billion in the previous year.
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