Thyssenkrupp cuts sales outlook after steel and automotive weakness weigh on results
Thyssenkrupp's Financial Performance and Market Challenges
By Christoph Steitz
Lower Demand Impacts Sales Forecast
FRANKFURT, May 12 (Reuters) - German conglomerate Thyssenkrupp cut its 2026 sales outlook on Tuesday, citing lower demand at its steel and automotive division in a sign of muted economic activity across Europe.
Geopolitical Uncertainties Affect Outlook
"We remain slightly cautious ... in respect of our sales forecast, not least because of heightened geopolitical uncertainties and their impacts on the international markets," finance chief Axel Hamann said in a statement.
Revised Sales Expectations and Analyst Predictions
The company now expects sales to fall by up to 3% and to remain flat at best, having previously expected a range of -2% to +1%. Analysts in an LSEG poll expected sales to fall by 1%.
Market Reaction and Strategic Moves
Share Price Movement
Frankfurt-listed shares in the company were down 2.5% at 10.06 euros by 0635 GMT.
Divestment Strategy and Steel Business Challenges
Thyssenkrupp, which is in the process of divesting all its divisions in an attempt to turn into a holding structure, said that demand for steel remained "persistently weak".
Failed Sale to Jindal Steel International
Talks to sell the group's steel business to India's Jindal Steel International broke down this month, highlighting the structural challenges facing heavy industry in Europe.
Quarterly Results
Operating Profit Misses Forecast
Thyssenkrupp's second-quarter operating profit fell by two thirds to 65 million euros ($76 million), missing the 231 million euro forecast in an LSEG poll.
($1 = 0.8502 euros)
(Reporting by Christoph SteitzEditing by David Goodman)
