Germany’s ThyssenKrupp drops 2019 forecast after weak quarter

Frankfurt (dpa) – German steel and engineering company ThyssenKrupp on Thursday cut its forecast for the current fiscal year and said it could sell its lift business as it reviews the profitability of various business divisions following a weak third quarter. The Essen-based company is now expecting an operating profit of around 800 million euros (895 million dollars) for the year ending September 30, down from the previous forecast of between 1.1 billion and 1.2 billion euros. ThyssenKrupp is likely to make an overall loss, the company said, confirming earlier predictions.

ThyssenKrupp intends to speed up a major restructuring, placing additional weak business divisions under review. Chief executive Guido Kerkhoff is also considering offers to buy its lift operations, or else proceed with previously announced plans to list the unit. We will not allow in future that units without clear prospects burn money that other units have earned,” Kerkhoff said on Thursday. For the third quarter, profits on an EBIT basis fell by almost a third to 226 million euros, with the traditional steel unit responsible for the drop. The company blamed weakening demand on a cooling global economy, low sales prices and high iron ore prices.

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