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Limited economic visibility - CFO
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Q1 sales stable at 9.02 bln eur
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Profit at materials unit down 91%
(Recasts, adds details on results)
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSEDORF, Feb 14 (Reuters) - Thyssenkrupp's operating profit fell by a third in the first quarter,
as the German warship-to-car parts conglomerate said on Tuesday
its customers placed fewer orders, while its wholesale business
was hit by falling cost of metals.
Concerns of an impending recession in the U.S., coupled with
the war in Ukraine, have caused prices for steel to fall and
customers to empty their inventories.
That has impacted Thyssenkrupp's materials trading division, where profits tanked by 91%. The Essen-based company pointed to destocking at automotive clients - the group's single-biggest customer base. "There is limited visibility in respect of future economic developments," Chief Financial Officer Klaus Keysberg said in a statement.
Adjusted earnings before interest and tax, or EBIT, came in
at 254 million euros ($272 million) in the October-December
period, while sales remained stable at 9.02 billion euros, the
company said.
Its steel business, Europe's second-largest after
ArcelorMittal , was less affected than expected due to
long-term contracts that lock-in prices and only reflect
declines with a time delay of several quarters.
($1 = 0.9328 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff;
Editing by Sandra Maler, Miranda Murray and Nivedita
Bhattacharjee)
