ThyssenKrupp AG (TYEKF.PK) blamed subdued economic activity in core markets, as the German steel giant reported Tuesday a loss for the first quarter and said it is unable to provide a reliable full-year forecast.
"Our performance in 2011/2012 will be shaped to a very large extent by the impact of the sovereign debt crisis on our core markets in Europe and the NAFTA region, the scale of which still cannot be accurately assessed. For this reason we are unable to provide a reliable full-year forecast at present," the company said in a statement.
Yet, the company expects losses at the Steel Americas division declining in the remainder of the year. An earnings contribution from the Technologies business is anticipated to be higher in the second fiscal half than in the first half of the year.
The company will continue to try to reduce costs in fiscal 2011/2012 and cut its net financial debt.
In the first quarter, net loss attributable to stockholders was 460 million euros or 0.89 euros per share, compared to a profit of 142 million euros or 0.31 euros per share last year.
The steelmaker incurred special items of 155 million euros resulting from impairment charges in particular on goodwill associated with the sale of the civil shipbuilding operations.
Excluding special items, adjusted EBIT from continuing operations plunged to 83 million euros from 261 million euros a year earlier.
Net sales slipped 1 percent to 9.90 billion euros, while order intake grew 1 percent. Including the Stainless Global business that is being sold, the Group's order intake was unchanged year-over-year at 11.3 billion euros.
Sales surged in Steel Americas division, which has steelmaking and processing plants in Brazil and the U.S., to 498 million euros from 86 million euros.
The Components Technology business area, which supplies high-tech components for wind turbines, construction equipment and general engineering applications, improved sales by 10 percent to 1.75 billion euros. Order intake increased 11 percent.
Sales slipped 5 percent in Materials Services segment, amid pressure on margins and prices. Elevator Technology sales grew 4 percent to 1.35 billion euros with a 12 percent increase in order intake.
The stock closed on Frankfurt's Xetra on Monday lower by 0.34 percent at 21.90 euros on a volume of 2.57 million shares.
For comments and feedback: editorial@rttnews.com