Thyssenkrupp Nucera halts hiring in high-cost countries as Q2 loss widens
Financial Performance and Cost-Saving Measures
By Christoph Steitz and Amir Orusov
Hiring Freeze and Cost Reduction Initiatives
FRANKFURT, May 12 (Reuters) - Thyssenkrupp Nucera has frozen hiring in high-cost countries as part of broader saving measures, it said on Tuesday, after its second-quarter loss widened due to higher costs for hydrogen projects and the termination of a U.S. pilot project.
Expected Savings and Personnel Adjustments
Finance chief Stefan Hahn said during a conference call that cost measures were expected to deliver around 25 million euros ($29 million) in annual savings in fiscal 2026/27, compared with the prior year. That includes the hiring freeze and reduced working hours in Germany equivalent to about 40 full-time roles.
Implementation and Flexibility of Personnel Measures
Personnel measures involve no significant implementation costs, thanks to flexible work contracts, and can be largely reversed if order intake picks up, Hahn added.
Additional Savings and Operational Shifts
The hydrogen equipment supplier also targets more than 15 million euros in additional yearly savings through measures such as shifting functions to lower-cost countries and streamlining research and development and hydrogen product activities. Any relocation costs would also be limited.
"Overall, the programme is well underway and will not only mitigate the current market softness, but also enhance our structural efficiency and competitiveness going forward," Hahn said.
Operational Impact and Market Conditions
The company's CEO Werner Ponikwar said the company had not seen any impact from Middle East supply chain disruptions on its operations, which include the NEOM project in Saudi Arabia.
Quarterly Financial Results
Thyssenkrupp Nucera reported a net loss of 64 million euros ($75 million) for the second quarter of its financial year, missing an LSEG mean estimate for a loss of 32 million euros.
Cash Flow and Financial Outlook
The company, which pre-released key quarterly numbers last week, also said its free cash flow improved to 9 million euros, compared to an outflow of 5 million euros a year ago.
($1 = 0.8511 euros)
(Reporting by Christoph Steitz in Frankfurt, Amir Orusov in Gdansk; Editing by Tom Hogue and Milla Nissi-Prussak)
